Chapter 2
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Created by:
Nick_Collier_1 on January 18, 2012
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28 terms
Terms | Definitions |
|---|---|
 Agressive Growth Stock Mutual Fund | seeks to provide maximum long-term capital growth from stocks of primarily smaller companier or narrow market segments; devidend imcome is incidental; most volatile fund; referred to as small-cap fund. |
| Annuity | income from capital investment paid in a series of regular payments |
| 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. | a debt instrument issued by a bank |
| Commodity | anything bought or sold |
| Diversification | the act of introducing variety (especially in investments or in the variety of goods and services offered) |
| 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 | A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. |
| Investments | In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making 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 | being in cash or easily convertible to cash |
| Mid Cap Fund | mutual fund containing a group of medium-sized companies that are growing |
| Money Market | a market for short-term debt instruments |
| Mutual Fund | a regulated investment company with a pool of assets that regularly sells and redeems its shares |
| 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 | a venture undertaken without regard to possible loss or injury |
| 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 | An account you have at a financial institution that helps you accumulate and save money and earn a small amount of interest at the same time. |
| 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 Stock | this has a high risk; you are buying an piece of ownership of the company and your return comes as the company increases in value or pays you some of the profits |
| Small Cap Fund | Mutual fund that invests in companies whose market value is less than $1 billion; aggressive growth stock mutual fund. |
| Speculative | Purchasing Risky Investments that could have high risk and rewards |
| Track Record | the previous successes or failures of a product, person, or organization |
| Variable Annuity | annuity that has a varying rate of return based on the mutual funds in which one has invested |
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