Shared Flashcard Set

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Vocabulary: Coach Myles
8.01
15
Business
12th Grade
11/07/2011

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Cards

Term
save
Definition
put back money for later use
Term
invest
Definition
using money to make money
Term
liquidity
Definition
the availability of funds on short notice
Term
volatility
Definition
how easily the interest or cash value of an investment can change
Term
bond
Definition
a certificate of debt issued by a corporation or government that entitles the bondholder to a set rate of interest on the face value of the bond until it matures
Term
Koegh Plan
Definition
a retirement account for self-employed persons that allows tax-deductible contributions up to $30,000 or 20% f self-employment earnings, whichever is less, to be made to the account annually and claimed as a tax deduction. The funds in the account accumulate, earn interest, and may not be withdrawn before retirement without penalty.
Term
savings bond
Definition
debt certificate issued by the U.S. Treasury that is not transferrable
Term
IRA
Definition
individual retirement account: allow individual to put back money to fulfil necessary needs in terms of their later years
Term
Roth IRA
Definition
a personal savings plan, contributions are not taxed deductible, earnings are tax free, cannot exceed $5,000
Term
stock
Definition
a share in ownership of a corporation
Term
common stock
Definition
stock that pays dividends based on company earnings and economic conditions
Term
preferred stock
Definition
stock that pays set dividends (profits) at set rates regardless of the amount of profits the company earns
Term
Blue Chip Stock
Definition
from nationally recognized companies with long records of profit, dividend payments, and a good reputation for management(less risky)
Term
mutual fund
Definition
an investment offered by a company that uses money it receives from investors to buy securities from corporations and governments
Term
CD
Definition
certificate of deposit: money deposited for a set period of time that earns a set annual rate of interest
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