Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
42 Cards in this Set
- Front
- Back
|
the act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit
|
investment
|
|
|
the system that allows the transfer of money between savers and borrowers
|
financial system
|
|
|
claim on the property or income of a borrower
|
financial asset
|
|
|
institution that helps channel funds from savers to borrowers
|
financial intermediary
|
|
|
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
|
mutual fund
|
|
|
spreading out investments to reduce risk
|
diversification
|
|
|
a collection of financial assets
|
portfolio
|
|
|
an investment report to potential investors
|
prospectus
|
|
|
the money an investor recieves above and beyond the sum of money intially invested
|
return
|
|
|
the interest rate that a bond issuer will pay to a bondholder
|
coupon rate
|
|
|
the time at which payment to a bondholder is due
|
maturity
|
|
|
the amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity
|
per value
|
|
|
the annual rate of return on a bond if the bond were held to maturity
|
yield
|
|
|
low-denomination bond issued by the United States government
|
savings bond
|
|
|
a bond isued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools
|
municipal bond
|
|
|
a bond that a corporation issues to raise money to expand its business
|
corporate bond
|
|
|
an independent agency of the government that regulates financial markets and investment companies
|
Securities and Exchange Commission
|
|
|
a lower-rated, potentially higher-paying bond
|
junk bond
|
|
|
market in which money is lent for periods longer than a year
|
capital market
|
|
|
market in which money is lent for periods of less than a year
|
money market
|
|
|
market for selling financial assets that can only be redeemed by the original holder
|
primary market
|
|
|
market for reselling financial assets
|
secondary market
|
|
|
portion of stock
|
share
|
|
|
claims of ownership in a corporation
|
equities
|
|
|
the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller
|
capital gain
|
|
|
the difference between a lower selling price and a higher purchase price resulting in a finacial loss to the seller
|
capital loss
|
|
|
the division of a single share of stock into more than one share
|
stock split
|
|
|
a person who links buyers and sellers of stock
|
stockbroker
|
|
|
a business that specializes in trading stocks
|
brockerage firm
|
|
|
a market for buying and selling stock
|
stock exchange
|
|
|
an electronic marketplace for stocks and bonds
|
OTC market
|
|
|
American market for OTC securities
|
Nasdaq
|
|
|
contracts to buy or sell at a specific date in the future at a price specified today
|
futures
|
|
|
contracts that give investors the choice to buy or sell stock and other financial assets
|
options
|
|
|
the option to buy shares of stock at a specified time in the future
|
call option
|
|
|
the option to sell shares of stock at a specified time in the future
|
put option
|
|
|
a steady rise in the stock market over a period of time
|
bull market
|
|
|
aa steady drop in the stock market over a period of time
|
bear market
|
|
|
index that shows how certain stocks have traded
|
The Dow
|
|
|
index that shows the price changes of 500 different stocks
|
S&P 500
|
|
|
the collapse of the stock marketin 1929
|
Great Crash
|
|
|
the practice of making high-risk investments with borrowed money in hopes of getting a big return
|
speculation
|
