27 terms

chapter 2 vocabulary

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
payment received every year
a certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
certificate of deposite
anything that is bought or sold
the act of introducing variety
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.
contracts to buy or sell at a specific date in the future at a price specified today
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
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
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
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
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
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