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Week 4
By Kayla, Mikayla & Kate
11
Finance
9th Grade
01/26/2012

Additional Finance Flashcards

 


 

Cards

Term
Certificates of deposit
Definition
A certificate that is issued to a person by the bank when the person is depositing money into an account for a specific period of time (ie. six months, one year, or two years); If the person withdraws the money early from this account then there is a penalty charge.
Term
Corporate bonds
Definition
A certificate that represents a purchaser’s agreement to lend money based on the borrower’s promise to repay the debt.
Term
Default risk
Definition
The potential risk that the bond issuer will not pay interest or return money when it matures
Term
Money Market Mutual Funds
Definition
A fund restricted by law to investing in the short-term money market. MMMFs provide low risk and low returns, but they maintain their investment value.
Term
Mutual funds
Definition
An investment tool that pools the money of many shareholders and invests it in a diversified portfolio of securities, such as stocks, bonds, and money market assets
Term
Rate of return
Definition
The rate or how fast money in a savings account of investment grows
Term
Risk
Definition
The likelihood of an investment losing value or gaining value; the uncertainty of which it will be.
Term
Savings accounts
Definition
A bank account used to deposit money for safe keeping and which will earn interest over time
Term
Savings bonds
Definition
A document representing a loan of more than one year to the U.S. government, to be repaid, with interest on a specified date
Term
Stocks
Definition
Units of ownership in a corporation
Term
What are some investment strategies?
Definition
1.Mutual Funds 2.Stocks 3. Corporate Bonds
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