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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Investing |
Means using your savings to earn more money |
Using - earning. |
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Compound interest |
Is calculated on the amount saved plus the interest previously earned |
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Four factors to consider when selecting an investment |
Safety Return Liquidity Taxes |
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Yield |
the percentage of money earned on your savings or investment over a year |
Percent |
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Liquidity |
Is the ease with which an investment can be changed into cash without losing its value. |
Change |
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Taxes |
Earnings from most savings and investments. |
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Preferred stock |
Has priority over common stock in the payment of a sum of money paid regularly. |
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Common stock
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Represents general ownership in a corporation and a right to share in its profits. |
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Mutual fund |
Is an investment fund set up and managed by a company that receives money from many investors. |
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Types of mutual funds |
Aggressive growth stock funds Income funds International funds Sector funds Bonds funds Balanced funds |
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Real estate |
Land and anything that is attached to it |
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Municipal bonds |
Bonds issued by local and state governments |
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Economic conditions affect stock prices - economic factors |
Inflation Interest rates Consumer spending Employment |
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Stockbroker |
licensed specialist on the buying and selling of stocks and bonds |
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Stock exchange |
is a business organization that accommodates the buying and selling of securities |
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Stock transactions |
Using a stockbroker Online investing Stock exchanges |
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Equity |
Is the difference between the price at which you could currently sell your house and the amount owed on the mortgage. |
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Mortgage |
Legal document giving the lender a claim against the property if the principle, interest, or both are not paid as agreed |
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