Easy Lexicon Terms | Slightly Less Easy Lexicon Terms | Difficult, but Not Really | Maybe its on the test, maybe its not | Random |
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Credit
Term for when a borrower receives something of value now and agrees to repay the lender at a later date—generally with interest.
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Socially Responsible Investing
Term for A portfolio of investments of companies that are trying to socially and environmentally conscious (Ie. Clean energy companies might be included in this type of portfolio.)
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Compound Interest
Whats the term for when you earn interest on top of interest?
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Zero Coupon Bond
A bond for which no periodic interest payments are made. The investor receives one payment at maturity equal to the principal invested plus interest earned compounded semiannually at the original interest rate to maturity.
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Diversification
investment strategy for allocating your assets available for investment among different markets, sectors, industries and securities.
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Net Income
Term for an individual's income after taking taxes
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Laissez faire
Term for an economic theory from the 18th century that opposed any government intervention in business affairs
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Bid
Price at which a buyer is willing to purchase a security.
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Treasury Bill
Non-interest bearing (zero-coupon) debt security issued by the U.S. government with a maturity of four, 13 or 26 weeks.
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Dividends
portion of a company’s earnings that is paid to
shareholders, on a quarterly or annual basis |
Routing Number
Term for a nine-digit number used to identify a bank or financial institution when clearing funds for electronic transfers
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The Federal Reserve
the central bank of the United States
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Coupon Rate
The interest rate on a bond, expressed as a percentage of the bond's face value. Typically, it is expressed on a semi-annual basis.
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Bond
A type of debt that a company issues to investors for a specified period of time.
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Mutual Fund
type of investment made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
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Broker
Term for a person who buys or sells an investment for you, in exchange for a fee
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Annual Fee
a yearly fee
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Default Risk
Possibility that a bond issuer will fail to pay principal or interest when due.
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Municipal Bonds
A bond issued by states, cities, counties and towns to fund public capital projects like roads and schools, as well as operating budgets.
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Stocks
when you have proportionate ownership in the issuing corporation, you have..
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Liquidity
Term for how easily you can turn your stock into cash (getting into and out of a stock)
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Socialism
Term for when the state owns and controls the major means of production.
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Principal
The face amount of a bond, exclusive of accrued interest and payable at maturity.
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Goods
tangible items that we desire
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Fiat Money
value of currencies is set by supply and demand and people's faith in its worth
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