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Principles of Business - Unit 6
Insurance, Credit, and Investments
22
Business
10th Grade
03/28/2012

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Cards

Term
Preferred Stock
Definition
priority over common stock in the payment of dividends but no voting rights
Term
Common Stock
Definition
represents general ownership in a corporation and a right to share in its profits
Term
Stock Broker
Definition
A licensed specialist in the buying and selling of stocks and bonds
Term
Stock Exchange
Definition
Business organization that accommodates the buying and selling of securities
Term
Market Value
Definition
The price at which a share of stock can be bought and sold in the stock market
Term
Corporate Bond
Definition
A certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date
Term
Mutual Fund
Definition
An investment fund set up and managed by a company that receives money from many investors
Term
Credit
Definition
Buying something now and paying for it later
Term
Finance Charge
Definition
total dollar cost of credit including interest and all other charges (added if total owed is not paid)
Term
Loan
Definition
Borrowed money for special use
Term
Collateral
Definition
Property that is offered as security for some loan agreements
Term
Cosigner
Definition
the party responsible for payment of a note if the borrower does not pay as promised
Term
Down Payment
Definition
Part of purchase price paid at sale
Term
Annual Percentage Rate (APR)
Definition
Required by law, states the % cost of credit on a yearly basis
Term
Interest
Definition
the cost of using someone else’s money
Term
Principal
Definition
Amount borrowed
Term
Premium
Definition
The amount a policyholder must pay for the insurance coverage
Term
Insurance
Definition
A contract where one party agrees to pay another party for losses affecting the insured's interests
Term
Coverage
Definition
Protection against a specific kind of loss
Term
Comprehensive
Definition
Insurance designed to pay for the repair or replacement of the policy owner's car in the event of damage not resulting from an accident
Term
Collision
Definition
The act or process of colliding; a crash or conflict
Term
Coinsurance
Definition
the sharing of expenses by the policyholder and the insurance company
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