A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Annuity - investment with number of future payouts within a certain period of time
Adjustable Rate Mortgage (ARM) - mortgage with interest rate that flucuates with economic indicators or market
Asset - possession having present or future value
Asset Allocation - makeup of portfolio containing stocks, bonds, cash
Back End Load - charge when redeeming shares of a fund
Bankrupt - determination that person or company unable to pay debts
Beta - measure of stock’s volatility (market beta is 1.0)
Blue Chip - financially strong company with good record
Capital Gain - gains made on the sale of stock, bond, property or asset
Certificate of Deposit (CD) - short term money market instrument with set maturity date
Common Stock - security defining ownership in corporation
Consumer Price Index - measure of fluctuation in costs of goods
Debt - state of owing something
Diversification - spreading of risk by putting assets in several categories
Dividend - the shareholders “share” of the company, usually paid out in quarterly installments
Exchange Traded Fund (ETF) - security that tracks an index like mutual fund but trades like stock
Foreclosure - legal action to take away individuals ownership for a property
Front End Load - sales charge incurred at initial investment
Fundamental Analysis - evaluating investments based on company’s financial strength
Gross Domestic Product (GDP) - measure of value of goods produced within the US
Index Fund - a low fee fund that tracks one of the major indexes
Individual Retirement Account (IRA) - tax deferred investment vehicle for retirement
Leverage - investing on borrowed funds for higher potential returns
Liquidity - ability to turn asset into cash
Margin - original investment expressed as percent of current market value
Money Market Fund - fund where pooled investments are given to manager to invest in short term instruments
Mortgage - loan for a house or property
Mutual Fund - fund where pooled investments are given to manager to invest in primarily common stocks
Par Value - face value of a security
Power of Attorney - legal agreement granting a person control over another person’s decisions
Rate of Return - percentage of gain or loss
Real Rate of Return - percentage of gain or loss, after tax implications
Residual Value - predetermined value of something at the end of term
Risk - possibility of incurring loss
Stock - certificate of ownership in a company
Stock Market - market in which shares of stock are bought or sold
Tax Credit - amount by which taxed owed is reduce (dollars to dollars)
Tax Exemption - amount by which your taxable income is reduced
Technical Analysis - evaluating investments by analyzing trends and past performance through various means (candlestick analysis, point and figure chart, moving average)
Treasury Bill (T Bill) - government backed security with established rate and term
Variable Interest Rate - interest rate that rises and falls based on economic indicators
Volatility - degree that price of security goes up or down over period of time
Zero Coupon Bond - a bond that pays zero interest throughout its life
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