302 terms

W!SE Test Full Set

STUDY
PLAY

Terms in this set (...)

Cash card
An electronic card, preloaded with a monetary amount, that can be used to purchase items. not connected to a bank account or insured against loss.
Cashless society
a society where consumers rely solely on credit cards, debit cards, electronic accounts, and checks
Check
A bank-issued piece of paper that, when filled out by a depositor, serves to transfer money to another person.
Credit card
a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Debit card
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Dependents
A person who relies on another, especially a family member, for financial support.
Electronic transfer
a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
Employment benefits
In general, indirect and non-cash compensation paid to an employee. Some benefits are mandated by law (such as social security, unemployment compensation, and workers compensation), others vary from firm to firm or industry to industry (such as health insurance, life insurance, medical plan, paid vacation, pension, gratuity).
Tax exemption (allowance)
A part of a person's income on which no tax is imposed.
Fringe benefits
Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation and/or retirement
Gross wages
Total amount of money earned before deductions like taxes, retirement savings, and insurance contributions are taken out
Income
Earnings from work or investment
Garnishment
A court ruling that requires that money be taken out from a person's paycheck in order to pay a debt.
Human capital
the skills and knowledge gained by a worker through education and experience
Gift card
A card that is purchased for a certain amount and then used like cash
Income tax deductions
Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.
Inflation
A general increase in prices and fall in the purchasing power of money.
Inheritance
Valuable things (e.g. houses, cars, investments, cash) passed down from a deceased relative
IRS (Internal Revenue Service)
Federal Tax Collectors
Local taxes
A tax assessed and levied by a local authority such as a county or municipality. Usually collected in the form of property taxes, and is used to fund a wide range of civic services like road repair, schools, garbage collection, etc.
Money
Assets that people are generally willing to accept in exchange for goods and services or for payment of debts.
Money order
A form of check payment on which the financial institution prints the exact amount covered. Often used by people who do not have a checking account.
Net pay
Amount of income left after taxes and deductions have been taken out.
Paycheck stub or earnings statement
the part of a paycheck that allows an employee to see how much has been withheld
Payroll deductions
are the amounts subtracted from gross income which results in your net income
Payroll exemptions
Amount withheld by an employer from employee's earnings. It typically includes income tax, national insurance or social security contributions, and may also include group insurance or pension fund contributions, union or association dues, authorized wage assignments, etc.
Profit
A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something
Purchasing power
the ability to purchase goods and services
Rental income
The income received by property owners in the form of rent.
Social Security tax
A payroll deduction collected by employers by law and sent to the federal government to provide a small income and other services to the elderly, disabled Americans, and orphaned minors.
Store card
A plastic card that you use to buy goods on credit from a specific store or chain of stores. It is a credit-card that typically bears the name of the store
Supply and demand
an economic concept that states that the price of a good rises and falls depending on how many people want it (demand) and depending on how much of the good is available (supply)
Tax refund
an amount that a government gives back to a taxpayer who has paid more taxes than were due
United States Treasury Dept.
the federal department that collects taxes and administers federal finances. The IRS is part of this department
Upward mobility
Moving up the class system. Can be achieved through education, marriage, career, or financial success.
Windfall income
any type of additional income over expenses that is completely unexpected
Wages
An amount of money paid to an employee at a specified rate per hour worked
Balanced budget
A plan where income equals expenditures
Budget
A plan of how money will be spent and what it will be spent on.
Deficit
a shortage, especially of money
Discretionary income
Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
Disposable income
Income remaining for a person to spend or save after all taxes have been paid
Emergency Fund
a savings account you can access quickly to pay for unexpected expenses or emergencies, usually equal to 3-6 months of your salary
Fixed expense
expenses which stay basically the same from month to month, such as housing and transportation.
Income
Money earned from investments and employment.
Short term goal
Goals that will be reached in 3 months or less
Intermediary goal
Goals you can accomplish within 3 months to a year.
Long-term goal
A goal you plan to accomplish that will take more than one year
Needs
requirements for survival, such as food, clothing, and shelter. Also, things necessary to continue to earn an income.
Opportunity costs
cost of the next best alternative use of money, time, or resources when one choice is made rather than another
Pay yourself first
A GOLDEN RULE of personal finance. Put a portion of your paycheck into savings/investments before any other spending.
Personal income
Salaries and wages as well as investment income and government payments to individuals
Spending plan
An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time
Surplus
More of something than as needed particularly money
Trade offs
Alternatives that must be given up when one is chosen rather than another
Variable expense
Costs that vary in amount and type, depending on the choices you make.
Wants
things that add comfort and pleasure to your life
Annual Percentage Rate (APR)
Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan.
Buying power
The quantity of goods and services a person can buy with a given amount of money
Compound interest
interest earned on both the principal amount and any interest already earned
Federal Reserve Bank
One of the 12 operating arms of the Federal Reserve System, located throughout the nation, that together with their 25 Branches carry out various System functions, including operating a nationwide payments system, distributing the nation's currency and coin, supervising and regulating banks, analyzing economic conditions, and serving as banker for the U.S. Treasury.
Interest
An extra sum of money that borrowers have to repay creditors in return for the loan OR the extra money paid to savers by banks or investment companies
Interest rates
the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Principal
Amount borrowed when getting a loan or issuing a bond. Also, the first amount deposited in a savings or invested in an investment.
Rule of 72
A quick way to figure out how long it will take to double your money at a given return rate . Interest rate divided by 72.
Simple interest
interest paid on the principal alone
Time value of money
Money's potential to grow in value over time. The relationship between time, money, a rate of return, and earnings growth.
Check routing number
A number assigned by the American Bankers Association that identifies a specific bank or savings institution
ATM card
any payment card issued by a financial institution that enables a customer to access an automated teller machine (ATM) in order to perform transactions such as deposits, cash withdrawals, obtaining account information, etc.
Automatic bill payment services
Represent money that you have authorized your bank or other organization to move from one account to another at regular intervals.
Account balance
The amount in an account
Bank Statement
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
Bounced check
a check written for an amount more than in your account
Cash loan
a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday
Cashier's check
A check issued by a bank and sold to you for personal payments to people who won't accept a personal check. It certifies that you have the money available.
Certificate of Deposit (CD)
A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.
Certified check
a personal check for which a bank has guaranteed payment
Check cashing centers
company that will cash a check for a fee. Banks also cash checks, and some do so at no cost to the consumer, especially if he or she has an account at the bank or uses direct deposit.
Check cashing fee
a fee that the bank will charge you when you deposit a check issued by a customer of another bank into your bank account.
Check fraud
Occurs when someone alters a check by changing its amount to obtain more money from another person's account
Check number
checks are numbered for easy identification. Checks come from the bank pre-numbered and is located in the upper right-hand corner of the check.
Check register
The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.
Check stub
A source document that lists the same information that appears on a check and shows the balance in the checking account before and after each check is written.
Checking account number
second set of number, identification number of the owner's checking account
Collateralized loan
loan that is secured by properties or assets that the lender can take if you default on the loan
Commercial bank
A financial institution that accepts demand deposits and makes loans and provides other services for the public. It is privately owned and responsible for making a profit for its shareholders.
Credit
An arrangement to receive cash, goods, or services now and pay for them in the future.
Credit card
A plastic card used to make purchases now and pay for them later.
Credit Union
A nonprofit financial institution that is owned by its members and organized for their benefit. Has lower interest rates on loans and higher interest rates on deposits.
Debit card
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Depositor
a person or business that has cash on deposit in a bank
Direct deposit
An automatic deposit of a paycheck without having to take a physical check to the bank.
Endorse
to approve of and write one's signature on the back of a check
Endorsement
A signature or stamp on the back of a check transferring ownership
Federal Deposit Insurance Corporation
A federal guarantee of savings bank deposits initially of up to $2500, raised to $5000 in 1934, and frequently thereafter; continues today with a limit of $100,000
Finance companies
nonbank institutions that lend money to consumers and businesses for cars and other vehicles, home improvements, expansion, purchases, and other purposes
Financial intermediaries
institution that helps channel funds from savers to borrowers
Free checking
A checking account with no service fees; it does not pay interest and may come with conditions
Insufficient funds
A term used to indicate that the depositor's account is inadequate to cover the check
Line of credit
A financial arrangement between a person and a bank in which the bank pre-approves credit up to a specified limit, provided that the person maintains an acceptable credit rating
Liquidity
A measure of the ease with which an asset can be converted into money without a significant loss of value. i.e. "how quick, easy, and cheap it is to get your money out!"
Minimum balance required
The minimum dollar amount that a customer must have in an account in order to receive some sort of service, such as keeping the account open or receive interest.
Money market account
A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
Money order
A form of check payment on which the financial institution prints the exact amount covered. Often used by people who do not have a checking account.
Online access
Some bank accounts offer this as a way to allow customers to complete some financial transactions electronically, via the Internet, like checking account balances and making transfers.
Overdraft protection
an automatic loan made to you if you write a check for more money than you have in your account. There is a fee for this loan, but it can be better than the credit score hit you would take otherwise.
Pawn shops
charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
Penalty
A fee for early withdrawal of funds from things like bonds or CDs
PIN number
A numerical code used in many electronic financial transactions. Usually required when using bank debit or credit cards, and usually contains 4 digits.
Predatory lending
Any of a number of fraudulent, deceptive, discriminatory, or unfavorable lending practices. Many of these practices are illegal, while others are legal but not in the best interest of the borrowers.
Promissory Note
a written contract with a promise to pay a supplier a specific sum of money at a definite time
Reconcile
to check to make sure your bank account and your check record match up. This should be done at least once a week.
Reconciliation of check register
An accounting process used to compare two sets of records to ensure the figures are in agreement and are accurate.
Redlining
A discriminatory real estate practice in North America in which members of minority groups are prevented from obtaining money to purchase homes or property in predominantly white neighborhoods. The practice derived its name from the red lines depicted on cadastral maps used by real estate agents and developers. Today, redlining is officially illegal.
Safe deposit box
a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less.
Savings account
a bank account that accumulates interest
Savings bank
depository institution originally set up to serve small savers overlooked by commercial banks
Securities Investor Protection Corp
protect public customers against the risk of loss due to failure of broker-dealer who mismanages their investment
U.S. Savings bond
a discount bond issued bond the federal government that pays a guaranteed minimum rate of interest
3 C's of credit
Criteria used to determine your credit score. Character: From your credit history, a lender may decide whether you possess the honesty and reliability to repay a debt. Capacity: This refers to your ability to repay the debt. The lender will look to see if you have been working regularly in an occupation that is likely to provide enough income to support your credit use. Capital: A lender will want to know if you have valuable assets such as real estate, personal property, investments, or savings with which to repay debt if income is unavailable.
APR (Annual Percentage Rate)
The annual cost of credit expressed as a percentage of the amount borrowed. Includes interest rates, fees, and other costs.
Auto finance companies
financial organization that specializes in automobile loans to consumers
Balance owed
The total amount of money owed to a third party such as a credit card company, utility company, mortgage banker or other type of lender or creditor.
Bankruptcy
A legal process to get out of debt when you can no longer make all your required payments
Chapter 13 Bankruptcy
a reorganization form of bankruptcy for individuals that allows the debtors to keep their property and use their income to pay a portion of their debts over three to five years
Chapter 7 Bankruptcy
a proceeding designed to sell off a debtor's property, pay off creditors, and relieve the debtor from most debts. Also called liquidation and straight bankruptcy.
Cash advances
money lent: a loan given in cash, especially by an employer or credit card company, in anticipation of the borrower's being able to repay it
Charge cards
a card used for making payments; balance must be paid in full when the statement is received
Collateral
Property pledged to back a loan. The lender takes this if you stop paying the loan.
Consolidation loans
one large loan made to consumers to pay several debts at once
Consumer Credit Counseling Services
Services offered by organizations that help consumers find a way to repay debts through careful budgeting and management of funds.
Consumer debt
common forms of debt by consumers; credit card debt, payday loans, auto loans
Co-signed loans
signing for another person's debt for loans which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a low income or poor/limited credit history to obtain a loan.
Credit card companies
bank or business that allows somebody to purchase goods and services and pay for them later, often with interest
Credit history
A record of a consumer's ability to repay debts and demonstrated responsibility in repaying debts
Credit rating
a measure of your creditworthiness, often computed as a numerical score, using the FICO scoring system to analyze your credit history
Credit report
a report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances
Credit reporting agency
equifax, transunion, and experian keep a record of consumer's credit transactions
Credit score
A credit score is a numerical rating provided on a credit report that establishes creditworthiness based upon a person's past credit/payment history and their current credit standing.
Debtors anonymous
A 12 step program for those in copious amounts of debt to break free of their debt and solve their financial problems.
Default
failure to pay back a loan
Due date
The date a payment must be received or a late fee will be charged
Finance charge
A fee for borrowing money, added to a monthly credit card bill.
Fixed interest rate
interest rate that does not change from month to month
Foreclosure
Occurs when a lender takes a person's home because of the individual's inability to pay their mortgage.
Garnishment
A court ruling that requires that money be deducted from a person's paycheck involuntarily in order to pay a debt.
Grace period
A time period during which no finance charges will be added to your account
Home equity loans
A lone based on the difference between the current market value of a home and the amount of borrower owes on the mortgage
Identity theft
A crime that involves someone pretending to be another person in order to steal money or obtain benefits
Installment debt
type of loan repaid with equal payments, or installments, over a specific period of time
Late fee
the result of the credit card company not receiving and posting the payment on the due date
Lien
right to possess and sell the property of a debtor
Credit limit
the maximum amount that you may charge on your credit account
Line of credit
a pre-established amount that can be borrowed on demand with no collateral
Liquidation
selling for cash
Low credit rating
a credit rating around 500 or lower is high enough risk that many lenders will refuse a line of credit, and those that do grant one will penalize the borrower with high interest rates and difficult terms.
Minimum amount due
If the consumer makes the minimum payment, interest charges continue to accrue on all outstanding balances.
Mortgage
a specific type of loan that is used to buy real estate
Mortgage broker
A person who brings together the user of capital (borrower) and the supplier of capital (lender). For this service, a finder's fee is usually paid by the borrower.
Ownership
When a person "has title" on a car or house.
Pawn shops
charge very high interest for loans based on the value of tangible assets (such as jewelry or other valuable items)
Pawn ticket
A ticket issued by a pawnbroker in exchange for an article pawned, bearing details of the loan.
Payday loans
a loan where a borrower gets a cash advanced based on his paycheck. These loans generally must be repaid on the next payday. They often aim to trap the borrower in debt.
Predatory lending
Any of a number of fraudulent, deceptive, discriminatory, or unfavorable lending practices. Many of these practices are illegal, while others are legal but not in the best interest of the borrowers.
Prepayment
The unscheduled partial or complete payment of the principal amount outstanding on a mortgage or other debt before it is due. This can help reduce the long-term cost of the loan.
Promotional Rate
An interest rate charged to a customer during the early stages of a loan; the rate often foes up after a specified period of time
Repossession
taking away property due to failure to repay the debt
Revolving credit
a type of open credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card.
Secured Credit card
A credit card that requires you to promise collateral to receive credit.
Secured loans
loans backed by collateral that the bank can claim if the borrowers do not repay them
Unsecured loans
loans that require a good credit rating but no collateral
Tax preparers
use their knowledge of federal, state, and local tax codes and publications to prepare tax returns and make sure that their clients do not pay unnecessary taxes.
Title for goods
Legally established ownership to property.
Truth in Lending Act of 1968
Banks are required by law to fully disclose the interest and all finance charges that will be incurred on any particular loan what is know as the Annual Percentage Rate (APR).
Usury
Charging interest on a loan, especially charging illegally high or excessive interest
Variable interest
an interest rate that moves up and down based on the changes of an underlying interest rate index
Variable rate
An interest rate that changes at the discretion of the credit card company or lender
Annual deductible
The dollar amount you must pay each year before your insurance carrier will help pay costs covered under your policy
Assigned risk pool
consists of people who are unable to obtain automobile insurance due to poor driving or accident records and must obtain coverage at high rates through a state program that requires insurance companies to accept some of them.
Automobile insurance
Insurance that will cover damage to your car and damage you to do others with your car
Beneficiary
One who benefits from something; a person who is left money or other property in a will or the like
Cash value
The amount of money saved in a whole life policy that the policyholder can take by either borrowing against or cashing in the policy (surrendering the policy)
Claim
Formal request made to an insurance company for payment for a loss
Collision insurance
This covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can't be repaired. This type of coverage is usually optional
Comparison shopping
comparing prices, warranties, customer service, and other elements at various stores
Co-pay
a small fixed fee paid by the patient at the time of an office visit
Death benefit
Payment made to the beneficiary of a life insurance policy upon the death of the insured person. (also known as the face value)
Deductible
Specified amount of money that the insured must pay for covered expenses before the insurance policy begins to pay; usually annual amount per individual or family
Disability insurance
A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time.
Face value
the amount of insurance coverage that was originally purchased and that will be paid upon the death of the insured (also known as the death benefit)
Homeowners insurance
Protects the building, property, and items in the building
Insurance
A contract under which, for consideration, the insurer, or the insurance company, agrees to compensate you for a specific loss.
Comprehensive
covering or including everything
Insurance Benefit
The payments your insurance provider guarantees to make after covered services under an insurance policy.
Insured
a person whose finances are protected by an insurance policy
Long-term care insurance
Insurance coverage that provides a daily monetary benefit to people who are chronically ill and who require living assistance either at home or in a residential facility
Managed care health insurance
limits participants to seek health care from a specific list of providers
Mortgage insurance
Also known as "Private Mortgage Insurance," PMI protects the lender in case you can't make your mortgage loan payments and the lender has to take the property back through a process known as foreclosure.
No-fault insurance
Laws adopted in some states that require each person's automobile insurance company to pay for the insured's own losses, no matter who caused the accident.
Non-managed care health insurance
allows participants to seek health care from any qualified medical provider
Over insured
When an individual has coverage for more than the value of item that is insured.
Premium
A specific sum of money paid by the insured to the insurance company in exchange for financial protection against loss. Most often paid monthly for health insurance.
Property damage liability
is automobile insurance that applies when you damage the property of other.
Renter's insurance
Covers only the possessions owned by a person who does own their dwelling
Risk
The chance of financial loss from an event that cannot be entirely controlled
Term life insurance
Life insurance that pays a death benefit if the policyholder dies within a specific time period but has no remaining value at the end of this time.
Under-insured
When an individual has an insurance policy that doesn't cover all the things the person needs, or it won't cover those things with enough money.
Unemployment insurance
a government program that partially protects workers' incomes when they become unemployed
Universal variable life insurance
Type of the US life insurance which combines the benefits of an adjustable premium, adjustable coverage term life insurance, and a savings account
Whole life insurance
sometimes called straight life insurance or ordinary life insurance; can provide lifetime insurance coverage; in this case, fixed premiums are paid for life; pays interest on the cash value portion with a guaranteed minimum interest rate during life of the contract
Dependent
A person who depends on you for financial support (e.g. children, people with disabilities, the elderly)
American Stock Exchange
The second largest exchange with less stringent requirements allowing for younger, smaller companies to be listed.
Antiques
a collectible object such as a piece of furniture or work of art that has a high value because of its considerable age.
Bear market
A steady drop in the stock market over a period of time
Big Board
Oldest and largest stock exchange in the U.S., located on Wall Street in NYC. Also called New York Stock Exchange (NYSE)
Blue chip stock
stock of an established and historically successful corporation. Investors prefer them because they often grow reliably.
Bond
Certificate issued by a government or company promising to pay back a borrowed sum with interest.
Bond fund
A group of bonds that have been bundled together for investment purposes.
Bond principal
the amount payable at the maturity of the bond and on which the periodic cash interest payments are computed
Brokers
independent firms or individuals whose main function is to bring buyers and sellers together to make sales
Bull market
A period of increased stock trading and rising stock prices
Capital gain
the profit from the sale of an asset such as stocks, bonds, or real estate.
Capital loss
the difference between a lower selling price and a higher purchase price resulting in a financial loss to the seller
Collectibles
items of personal interest to collectors that can increase in value in the future (E.g. baseball cards, antiques, etc)
Common stock
the most basic form of ownership, including voting rights on major issues, in a company. Do not pay dividends
Diversification
Spreading out investments to reduce risk
Diversified portfolio
A portfolio that has various invesments with different characteristics ie: stocks and bond
Dividends
Company's share profits to the shareholders based on the corporation's performance.
Do not put all your eggs in one basket
you should not put all of your resources together in one place because you could risk losing everything at one time
Dow Jones Industrial Average
The average cost of 30 selected stocks, used to give an indication of the direction (up or down) of the stock market over time.
Equities
stocks that represent ownership shares in corporations
Face value
The amount the bondholder will be repaid at maturity.
Financial consultants
a person who gives advice regarding financial decisions.
Growth stock
Stocks of companies that reinvest profits back into the company. Will likely increase in value over time.
Income (stock with dividends)
Income Stock with Dividends - an equity security that pays out regular, generally steady increasing, dividends and offers a high yield.
Insured bonds
bonds secured by issuer's revenue and insurance company; reduces credit risk
Investing
The process of putting money someplace in the long-term with the intention of making a financial gain. Investment possibilities include stocks, bonds, mutual funds, real estate, and other financial instruments or ventures.
Liquidity
A measure of the ease with which an asset can be converted into money without a significant loss of value.
Money market account
A type of savings account that pays a higher interest rate because the financial institution invests the money you deposit.
Mutual Fund
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
NASDAQ Market
National Association of Securities Dealers Automate Quotations, computerized system for trading securities
Financial Industry Regulatory Authority
a self-regulatory organization and the largest non-governmental regulator of securities firms in the US; registers and provides qualification exams to industry professionals, writes rules for trading, educates the investing public, provides trade reporting, resolves disputes between customers and firms (FINRA)
New York Stock Exchange
The largest stock exchange, located in New York City. Most of the companies on this exchange are larger companies with higher-priced stock.
Portfolio
selection of stocks or bonds that a mutual fund purchases or an individual purchases
Preferred stock
stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
Primary market
the market in which new securities are originally sold to investors
Rate of return
Earnings from an investment, stated as a percentage of the amount invested; usually calculated on an annual basis.
Risk
Degree of uncertainty of return of more value on an asset
Risk tolerance
The degree of uncertainty that an investor can handle in regard to a negative change in the value of his or her portfolio.
S&P 500
a stock index based on prices of 500 major US corporations in a variety of industries and market sectors
Secondary market
the market in which previously issued securities are traded among investors
Securities
Another name for stocks that represent ownership of a company
Securities Exchange Commission (SEC)
an agency created in 1934 that monitors the stock market and enforces laws regulating the sale of stocks and bonds
Speculative stocks
stocks in relatively new firms that don't have an established track record of success
Speculator
one who buys something hoping to sell it for a profit
Stock exchanges
marketplaces where stocks are bought and sold
Stock fund
A mutual fund that invests its assets in a relatively large number and variety of common stocks
Stock symbol
the letters used to identify listed companies on the securities exchanges where they are traded
Stockholder
An owner of one or more shares of a corporation
Stockholders' rights
Any person, company or other institution that owns at least one share of a company's stock. Shareholders are a company's owners. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly.
Treasury bill
A government bond that is repaid within three months to a year.
Treasury note
a government bond that is repaid within two to ten years
Volatility
Indicates how much and how quickly the value of an investment, market, or market sector changes.
401(k)
A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings. Often the amount taken out is then matched by the employer.
Accountants
professionally qualified people who keep accurate accounts and produce final accounts
Asset
Something of value that can be sold for cash
Balance Sheet
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
Better Business Bureau
A non-profit organization sponsored by local businesses to provide general information on companies, is one of these. It maintains records on consumer inquiries and complaints and sometimes offers various consumer education programs.
Building equity
When you make payments on a mortgage, you are _________. This means that you are slowly paying off the loan, and the value of your house that is over and above the remaining loan balance is considered equity.
Consumer Price Index
an index of the cost of all goods and services to a typical consumer. This is used to calculate inflation.
Creditworthiness
a measure of your ability and willingness to repay a loan
Down payment
a portion of the total cost of an item that must be paid at the time of purchase. With mortgages it is usually 10-20%
Employee contributions
The portion of the insurance premium paid by the employee
Financial planners
they help clients understand their future financial needs, the risks that they face when investing, their ability to tolerate investment risks and their preferences for capital preservation vs. capital growth; often suggest asset allocations
Financing ownership
Obtaining money through borrowing to purchase something rather than renting it.
Fixed mortgage
interest rate doesnt change. term can be 15,20,30 yrs. mortgages with shorter terms have lower interest rates but require a higher income
Identity theft
A crime that involves someone pretending to be another person in order to steal money or obtain benefits
Impulse buying
making purchases based on emotion rather than on reason
Income tax
Tax paid to the state, federal, and local governments based on income earned over the past year.
Income tax return
a form, such as 1040 or 1040EZ, on which a taxpayer reports how much money he or she received from working and other sources and the exact taxes that are owed
Liability
A debt or an amount of money you will be required to pay
Monthly mortgage payment
Monthly Mortgage Payment- A monthly scheduled payment which includes interest paid by the borrower to lender on home loan.
Mortgage interest
______ could be deducted on your Federal income taxes. The government offers this to encourage home ownership.
Net worth
the difference between the amount that you own and the debts that you owe (Assets minus liabilities)
Pension
A fixed sum paid regularly to a person under given conditions to a person following his retirement from public service or a job
Phishing
An attack that sends an email or displays a Web announcement that falsely claims to be from a legitimate enterprise in an attempt to trick the user into surrendering private information
Property taxes
Taxes on assets, especially real estate, but also can be on boats, automobiles (often paid along with license fees), recreational vehicles, and business inventories.
Real estate
The land and all those items which are attached to the land. It is the physical, tangible entity, together with all the additions or improvements on, above or below the ground
Retirement planning
The process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program and managing assets. Future cash flows are estimated to determine if the retirement income goal will be achieved.
Roth IRA
Private retirement plan that taxes income before it is saved, but which does not tax interest on that income when funds are used upon retirement
Sales tax
A tax on a sale of merchandise or services
Security deposit
A sum of money usually equal to one month's rent, held by the landlord to cover any damage to the apartment caused by a tenant.
Social Security income
Money paid out to retirees who paid into the Social Security system. Still counts as a form of taxable income.
Stages in life
how a person should use their age in
consideration while investing (in stock or otherwise). For example, young people can be more riskier in their investments because they can wait their investments out if a problem arises. On the other hand, older people should make safer choices as they do not have the time factor in their grasp.
Tax deferred
The payment of taxes is put off until some future time, such as retirement
Tenant
A person who pays for the right to live in a residence owned by someone else
Title
the right of ownership to goods
Traditional IRA
A personal qualified retirement account through which eligible individuals accumulate tax-deferred income up to a certain amount each year, depending on the person's tax bracket.
Utility expenses
Charges paid by a customer to a company that provides things like water, sewage, electricity, phone, internet, etc.
Variable mortgages
A type of home loan in which the interest rate is not fixed.
Will
A legal document where a person lays out how their possessions should be split up after their death.
Debt to credit ratio
The size of the money you owe compared to the size of the total amount of money you could borrow. This is most often used in the context of credit cards.
YOU MIGHT ALSO LIKE...
STUDY GUIDE