chapter 2 vocabulary
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27 terms
Terms | Definitions |
|---|---|
 aggressive growth stock mutual fund | mutual fund that seeks to provide maximum long-term capital growth from stocks of promarily smaller companies or narrow market segments |
| Annuity | payment received every year |
| bond | a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money |
| C.D. | certificate of deposite |
| commodity | anything that is bought or sold |
| diversification | the act of introducing variety |
| dividend | that part of the earnings of a corporation that is distributed to its shareholders |
| fixed annuity | A type of annuity that provides a guaranteed fixed benefit amount payable for the life of the annuitant. |
| futures | contracts to buy or sell at a specific date in the future at a price specified today |
| investments | savings that are put to work to earn more money |
| growth stock mutual fund | fund that buys stock in medium-sized companies that have experienced some growth and are still expanding; also called a mid-cap fund |
| large cap fund | funds comprised of large, well-established companies |
| liquidity | How easily money can be accessed |
| mid cap fund | mutual fund containing a group of medium-sized companies that are growing |
| money market | Market in which money is lent for periods of less than a year |
| portfolio | a list of the financial assets held by an individual or a bank or other financial institution |
| rental real estate | buying real estate to rent out as an investment |
| risk | the chance an entrepreneur takes of losing time and money on a business that may not prove profitable |
| international stock mutual fund | Mutual fund that invests in securities markets throughout the world so that if one market is in a slump, profits can still be earned in others. |
| risk return ratio | a ratio based on the principle that a high-risk decision should generate higher financial returns for a business and more conservative decisions often generate lesser returns |
| savings account | a bank account that accumulates interest |
| share | any of the equal portions into which the capital stock of a corporation is divided and ownership of which is evidenced by a stock certificate |
| single stocks | futures contracts with the underlying asset being one particular stock |
| small cap fund | mutual fund that invests in companies whose markets value is less than $ 1 billion; largely consists of smaller, more volatile companies; also called growth stock mutual fund |
| speculative | not financially safe or secure |
| track record | the sum of recognized accomplishments |
| variable annuity | annuity that has a varying rate of return based on the mutual funds in which one has invested |
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