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28 Cards in this Set
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- Back
Aggressive Growth Stock Mutual Fund
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Mutual fund that seeks to provide maximum long-term capital growth from stocks of primarily smaller companies or narrow market segments; dividend income is incidental; the most volatile fund; also referred to as a small-cap fund.
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Annuity
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Contract sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement; the holder is taxed at the time of distribution or withdrawal, making this a tax-deferred arrangement.
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Bond
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Debt instrument where an issuer such as a corporation, municipality or government agency owes you money; a form of I.O.U.; the issuer makes regular interest payments on the bond and promises to pay back or redeem the face value of the bond at a specified point in the future (the maturity date).
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C.D.
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Certificate of Deposit, usually at a bank; savings account with a slightly higher interest rate because of a longer savings commitment (i.e. six months, one year, etc.).
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Commodity
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A food, metal, or fixed physical substance that investors buy or sell, usually via future contracts.
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Diversification
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To spread around one's investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk.
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Dividend
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Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders; generally distributed in the form of cash or stock.
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Fixed Annuity
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Type of annuity that guarantees a certain rate of return.
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Futures
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A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
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Investments
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Account or arrangement in which one would put their money for long-term growth; should not be withdrawn for a suggested minimum of five years.
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Growth Stock Mutual Fund
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Fund that buys stock in medium-sized companies that have experienced some growth and are still expanding; also called a mid-cap fund.
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Large-Cap Fund
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Funds comprised of large, well-established companies.
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Liquidity
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Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money; when there is more liquidity, there is typically less return.
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Mid-Cap Fund
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Mutual Fund containing a group of medium-sized companies that are growing.
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Money Market
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Mutual Fund that seeks to maintain a stable share price and to earn current income by investing in interest-bearing instruments with short-term (usually 90 days or less) maturities.
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Mutual Fund
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Pool of money managed by an investment company and invested in multiple companies, bonds, etc.; offers investors a variety of goals depending on the fund and its investment charter; often used to generate income on a regular basis or to preserve an investor's money; sometimes used to invest in companies that are growing at a rapid pace.
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Portfolio
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A list of your investments.
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Rental Real Estate
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Buying real estate to rent out as an investment.
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Risk
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Degree of uncertainity of return on an asset; in business, the likelihood of loss or reduced profit.
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International Stock Mutual Fund
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Mutual Fund that contains international or overseas companies.
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Risk Return Ratio
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Relationship of substantial reward in comparison to the amount of risk taken.
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Savings Account
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Accounts at financial institutions that allow regular deposits and withdrawals. The minimum required deposit, fees charged, and interest rate paid varies among providers.
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Share
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Piece of ownership in a company or mutual fund.
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Stocks
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Securities that represent part ownership or equity in a corporation, wherein each share is a claim on its proportionate stake in the corporation's assets and profits, some of which may be paid out as dividends.
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Small-Cap Fund
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Mutual fund that invests in companies whose marke value is less than $1 billion; largely consists of smaller, more volatile companies; also called aggressive growth stock mutual fund.
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Speculative
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Purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss.
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Track Record
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The past history of something; with investments, look at the five or ten year record.
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Variable Annuity
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Annuity that has a varying rate of return based on the mutual funds in which one has invested.
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