Vocab 2 Flashcards Preview

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Flashcards in Vocab 2 Deck (24):
1

Bond

Certificate issued by a company or the government in exchange for borrowed money.

2

Broker

A person who acts as a go-between for the buyers and sellers of stocks and bonds

3

Capital gain

Increase in the value of an asset from the time it was bought to the time it was sold.

4

Capital loss

Decrease in the value of an asset from the time it was bought to the time it was sold.

5

Certificates of deposit

Time deposits that state the amount of the deposit, maturity, and the interest being paid.

6

Diversification

Spreading investments into several types of accounts to lower overall risk.

7

Dividends

Money return a stockholder receives on the amount originally invested in the company by purchasing stock.

8

Individual retirement account

Private retirement account that allows individuals or married couples to save a certain amount of their earning per year.

9

Interest

Payment people receive when they lend money, allowing someone to use their money.

10

Keogh plan

Retirement plan that allows the self-employed to save up to 15% of their annual income and deduct it from their income.

11

Maturity

Period of time at which time deposits will pay a stated rate of interest.

12

Money market fund.

Type of mutual fund that uses investors' money to make short term loans businesses and banks.

13

Money market deposit account

Account that pays relatively high rates of interest, requires a minimum balance and allows immediate access to money

14

Mutual fund

Investment company that pools the money of many people to buy investments.

15

Over the counter market

Purchase and sale of stocks and bonds, often of smaller lesser- known companies which takes place outside the normal stock exchanges.

16

Pension plan

Company plans that provide for retirement income.

17

Saving

Nonuse of income for a certain period of time for later use.

18

Savings bonds

Bonds issued by the federal government as a way of borrowing money.

19

Stock

Share in ownership of the corporation issuing stock.

20

Tax-exempt-bond

Bonds sold by local and state governments the interest on which is not federally taxed.

21

Time deposits.

Savings plan that require their depositors to leave their money on deposit for a certain period of time.

22

Treasury bills

Certificates issued by the US Treasury in exchange for borrowed money in min. amounts of $10000 maturing in 3 months to 1 year.

23

Treasury bonds

Certificates issued by the US Treasury in exchange for borrowed money in min. amounts of $1000 and $5000 maturing 10+ years.

24

Treasury notes.

Certificates issued by the US Treasury in exchange for borrowed money in min. Amounts of $1000 and $5000 maturing in 2-10 years.