Chapter 19 Vocab

Front 1

Sydney

Back 1

Meese

Front 2

Saving

Back 2

The storage of money for future use.

Front 3

Investing

Back 3

Using your savings to earn more money.

Front 4

Current Income

Back 4

People who want income for current living expenses

Front 5

Long-TermGrowth

Back 5

people who desire financial security in thefuture.

Front 6

Interest

Back 6

themoney you receive for letting others use your money

Front 7

Compound Interest

Back 7

computed on the amount saved plus the interestpreviously earned.

Front 8

Savings account

Back 8

alow or zero minimum balance is a regular savings account.

Front 9

Certificate of deposit

Back 9

allows you to earn a higher interest rate than aregular savings account.

Front 10

Money Market account

Back 10

pays a variable interest rate based on variousgovernment and corporate securities.

Front 11

Capital Gain (Stock Investments)

Back 11

a stock increases in value and is then soldfor more than its original cost.

Front 12

Capital Loss

Back 12

when a investment is sold for less than itsoriginal cost

Front 13

Bond investments

Back 13

lendingmoney for use by businesses and governments.

Front 14

MutualFunds

Back 14

allows investors to spread out their riskamong many investments.

Front 15

Real estate

Back 15

people invest in real estate for the sense ofsecurity and stability.

Front 16

Commodities

Back 16

Grain,livestock, metals, currency, and financial instruments.

Front 17

Collectibles

Back 17

valuables are in hopes that their value willincrease.

Front 18

Safety

Back 18

assurancethat the money you have invested will be returned to you.

Front 19

Yield

Back 19

thepercentage of money earned on your savings or investment over a year.

Front 20

Liquidity

Back 20

is the ease with which an investment can bechanged into cash without losing its value.

Front 21

Tax–exempt

Back 21

youdon’t have to pay taxes on that income.

Front 22

Stockholder

Back 22

whenyou buy shares in a corporation.

Front 23

Dividends

Back 23

whena business makes profit to may split it up with the stockholders

Front 24

PreferredStock

Back 24

haspriority over common stock in the payments if dividends.

Front 25

CommonStock

Back 25

represents general ownership in a corporationand a right to share in its profits.

Front 26

Stockbroker

Back 26

alicensed socialist in the buying and selling of stocks and bond

Front 27

Commission

Back 27

brokers charge a fee

Front 28

FullService Broker

Back 28

providesinformation about securities you may want to buy.

Front 29

DiscountBroker

Back 29

justplaces orders and offers limited research and other services.

Front 30

StockExchange

Back 30

which the business organization thataccommodates the buying and selling of securities.

Front 31

MarketValue

Back 31

is the price at which a share of stock can bebought and sold in the stock market.

Front 32

Bond

Back 32

a certificate representing a promise to pay adefinite amount of money at a state interest rate on a specified date.

Front 33

MunicipalBonds

Back 33

bondsissued by local and state government.

Front 34

CorporateBonds

Back 34

bonds issued by corporations

Front 35

FaceValue

Back 35

theamount being borrowed by the corporation issuing the bond.

Front 36

StatedInterest Rate

Back 36

theprice investors are willing to pay for a bond.

Front 37

MutualFunds

Back 37

is an investment fund set up and managed by acompany that receives money from many investors.