18441327
Description
Flashcards by Shannon Anderson-Rush, updated more than 1 year ago
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Created by Shannon Anderson-Rush
almost 5 years ago
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| Question | Answer |
| Financial Plan | a comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans |
| Savings | the money one has saved, especially through a bank or official scheme |
| Investing | 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 |
| Stocks | a share which entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends |
| Government Bond | a debt security issued by a government to support government spending |
| Corporate Bond | debt security issued by a corporation and sold to investors |
| Mutual Funds | an investment program funded by shareholders that trades in diversified holdings and is professionally managed |
| Risk | possibility of loss or injury |
| Peril | exposure to injury, loss, or destruction; grave risk; jeopardy; danger |
| Traditional IRA | allows individuals to direct pre-tax income toward investments that can grow tax-deferred |
| Roth IRA | an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year |
| 401K | a qualified retirement plan that allows eligible employees of a company to save and invest for their own retirement on a tax deferred basis |
| Rule of 72 | a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return |
| Stock Market | the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place |
| Return | a profit from an investment |
| Liquidity | the availability of liquid assets to a market or company |
| Rate of Return | the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost |
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