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17 Cards in this Set
- Front
- Back
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What is a CD?
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A savings certificate entitling the bearer to recieve interest.
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What is a bond?
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If a corporation or government needs to borrow a large amount of money for a long time, it may issue bonds.
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What is a corporate bond?
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Bonds issued by coporations.
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What is a municipal bond?
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Bonds issued by the local or state government. Interest earned is free from federal income taxes.
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What is a U.S. Savings bond?
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Bonds issued by Federal Government.
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What is a treasury bill?
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issued for 3 months to one year.
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What is a treasury note?
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two to ten years.
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What is a treasury bond?
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ten or more years.
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What is a mutual fund?
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a pool of $ used by an investment company to purchase the securities of many corporations.
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What is dollar cost averaging?
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investing the same fixed dollar amount at regular intervals of a long period of time.
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What is no-load?
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no fees to buy/sell funds.
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what is a front-end load?
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fees for buying funds.
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what is a back-end load?
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fees for selling stocks.
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what is a stock?
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shares in the ownership of a corporation?
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2 ways to earn a return on investments?
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dividends and capital gains.
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What is a fixed annuity?
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a contract in which the insurance company makes a fixed dollar amount to the annuitant usually until he/she dies.
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what is a variable annuity?
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a contract in which, at the end of the accumulation stage, the insurance company guarantees minumum payment.
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