Shared Flashcard Set

Details

Stock
N/A
24
Business
10th Grade
12/10/2012

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Cards

Term
save
Definition
To set aside present income for future use
Term
invest
Definition
To put money to work earning interest over time
Term
profit
Definition
Money remaining in a business after expenses are paid
Term
interest
Definition
Money paid for the use of someone else’s money over a period of time
Term
return
Definition
The income that can be made on an investment
Term
liquidity
Definition
How easily an asset can be converted into cash
Term
volatility
Definition
How easily the interest or cash value of an investment can change
Term
risk
Definition
The possibility of earning or losing money from an investment
Term
transaction
Definition
A saving/investing activity---e.g., deposits, withdrawals, and transfers
Term
savings account
Definition
An account in a bank/financial institution for saving, making deposits/withdrawals
Term
money market
Definition
A savings account in which deposits are invested to yield additional earnings
Term
CD
Definition
A certificate of deposit stating money has been deposited for a specific time
Term
savings bond
Definition
A debt certificate issued by the U. S. Treasury that is not transferable
Term
IRA
Definition
An Individual Retirement Account used to save money for retirement
Term
Koegh plan
Definition
A tax-deferred retirement plan for self-employed people
Term
Roth IRA
Definition
A personal savings plan; contributions are not tax-deductible; earnings are tax-free
Term
stock
Definition
A share of ownership and interest in the assets and earnings of a company
Term
common stock
Definition
Stock in a public corporation; returns vary, but higher risk
Term
preferred stock
Definition
Stock with fixed dividends, less risk
Term
blue chip stock
Definition
Stock from large companies, less risk
Term
growth stock
Definition
Stock from growing companies, more risk
Term
penny stock
Definition
Stock that costs less than $1 per share; extremely high risk
Term
bond
Definition
A certificate of debt given by a company or government that entitles the
bondholder to the original amount plus interest paid by a set date
Term
mutual fund
Definition
A group of investments held in common with shares owned by individual investors
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