Easy Lexicon Terms Slightly Less Easy Lexicon Terms Difficult, but Not Really Maybe its on the test, maybe its not Random
100
Credit
Term for when a borrower receives something of value now and agrees to repay the lender at a later date—generally with interest.
100
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.)
100
Compound Interest
Whats the term for when you earn interest on top of interest?
100
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.
100
Diversification
investment strategy for allocating your assets available for investment among different markets, sectors, industries and securities.
200
Net Income
Term for an individual's income after taking taxes
200
Laissez faire
Term for an economic theory from the 18th century that opposed any government intervention in business affairs
200
Bid
Price at which a buyer is willing to purchase a security.
200
Treasury Bill
Non-interest bearing (zero-coupon) debt security issued by the U.S. government with a maturity of four, 13 or 26 weeks.
200
Dividends
portion of a company’s earnings that is paid to
shareholders, on a quarterly or annual basis
300
Routing Number
Term for a nine-digit number used to identify a bank or financial institution when clearing funds for electronic transfers
300
The Federal Reserve
the central bank of the United States
300
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.
300
Bond
A type of debt that a company issues to investors for a specified period of time.
300
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.
400
Broker
Term for a person who buys or sells an investment for you, in exchange for a fee
400
Annual Fee
a yearly fee
400
Default Risk
Possibility that a bond issuer will fail to pay principal or interest when due.
400
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.
400
Stocks
when you have proportionate ownership in the issuing corporation, you have..
500
Liquidity
Term for how easily you can turn your stock into cash (getting into and out of a stock)
500
Socialism
Term for when the state owns and controls the major means of production.
500
Principal
The face amount of a bond, exclusive of accrued interest and payable at maturity.
500
Goods
tangible items that we desire
500
Fiat Money
value of currencies is set by supply and demand and people's faith in its worth






Semester One Final Exam Review

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