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42 Cards in this Set
- Front
- Back
Passbook savings account
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federally insured account at a banking/saving institution from which you can withdraw your money at any time
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financial risk
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the risk that a business or government will not be able to return your money
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real rate of return
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rate of return from an investment after adjustment for inflation
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annual rate of return (yield)
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additional money earned on an investment in percentage terms for a year
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inflation risk
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the risk that the real value of your investment will decrease because of a rise in the price level
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compound interest
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interest earned not only on the principal but also on the interest already earned
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market price risk
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the risk that the price of an investment will go down because of supply and demand
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rate of return
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income earned from an investment divided by the amount of the investment
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liquidity risk
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the risk that an investment will be difficult to turn into cash
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money market mutual fund
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a mutual fund that includes loans to businesses and governments for short periods of time
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wealth/net worth
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the amount of money a person accumulates; total assets minus total liabilities
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nominal rate of return
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the rate of return from an investment before adjusting for inflation
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fraud risk
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the risk that an investment has been misrepresented
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certificate of deposit
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a type of savings deposit that you must leave in a bank for a specified amount of time that earns a higher rate of return than a regular saving deposit
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real estate
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forms of investment consisting of homes, buildings, and land
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stocks
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shares of ownership of a corporation bought and sold on a stock market
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stock mutual fund
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a mutual fund that has more risks than a money market mutual fund and has higher potential rewards
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American Exchange (AMEX)
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stock market much like the NYSE but usually consists of smaller companies and fewer daily trades
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bond
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certificate issued by a government or a public company promising to repay borrowed money at a fixed rate of interest at a specified time
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bond mutual fund
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an investment fund more secure than a stock mutual fund that offers lower rate of return made up of bonds, both corporate and government
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capital
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money or technology used in production
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diversification
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the act of introducing variety, especially in investments or in the variety of goods and services offered
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economic investing
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the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns
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insider trading
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illegal practice of trading stock on the stock exchange to one's own advantage through having access to confidential information
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interest
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money paid regularly at a particular rate for the use of money lent, or for the repayment of a debt
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invest
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expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture
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mutual fund
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an investment program funded by shareholders that trades in diversified holdings and is professionally managed
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NASDAQ stock market
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National Association of Securities Dealers Automated Quotations; a computerized system for trading in securities
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New York Stock Exchange
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founded in 1792, the world's largest stock market
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personal investing
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financial investment by a person rather than by a business or financial institution
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primary stock market
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market that issues new securities on an exchange
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profit
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a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something
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publicly-traded company
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a company that has permission to offer its securities for sale to the general public, typically through a stock exchange, or the market makers operating in over the counter markets
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savings
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the money one has saved, especially through a bank or official scheme
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secondary stock market
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exchanges for corporate securities such as the NYSE and the NASDAQ
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Securities and Exchange Commission
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an independent federal agency that oversees the exchange of securities to protect investors
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stock market
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an exchange where security trading is conducted by professional stock brokers
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volatility
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statistical measure of the dispersion of returns for a given security or market index
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currency |
cash; money that is in the form of "paper" bills; Federal Reserve Notes. |
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liquidity |
the ease with which an asset can be converted to cash |
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risk |
the chance that an asset may lose some or all of its value |
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value |
the worth placed on an item, possession, or product. |