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chapter 12
NA
25
Other
11th Grade
03/26/2012

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Term
appreciation
Definition
an increase in the value of an investment.
Term
captial gain
Definition
income earned when selling prices is greater than the purchase price.
Term
stock
Definition
is a share in the ownership in a corporation.
Term
dividend
Definition
a portion of a companys earnings paid to stockholders.
Term
common stock
Definition
earned dividends declared by the company.
Term
preferred stock
Definition
receive regular dividends at a set rate.
Term
securities exchange
Definition
a formal market where securities are brought and sold by stockbrokers.
Term
stockbroker
Definition
an agent who buys and sells securities for clients.
Term
bond
Definition
a certificate o debt issued by a corporation or government.
Term
mutual fund
Definition
created by pooling the money of many people and investing it in a collecting of securities.
Term
net asset value
Definition
the funds assets minus its liablities.
Term
money market fund
Definition
a type of mutual fund that deals only in high interest, short term investment,such as U.S Treasury
Term
bull market
Definition
an extended period of consumer confidence and optimism.
Term
bear market
Definition
an extended period of uncertainty and pessimism when stock prices fall.
Term
investment protfolio
Definition
a collection of securities and other assets a person owns.
Term
diversification
Definition
refers to spending risk by putting money in a variety of investments.
Term
prospectus
Definition
a legal document that gives a detailed description of a security.
Term
dollar cost averaging
Definition
a strategy of investing a fixed dollar amount at regular intervals.
Term
estate
Definition
refers to the assets and liabilities a person leaves when he or she dies.
Term
executor
Definition
a person appointed to carry out the terms outlinedin their will
Term
will
Definition
is a legal document stating a persons wishes for his pr her estate after death.
Term
trustee
Definition
a person or intitution named to manage assets on behave of the beneficiaries.
Term
living will
Definition
is a statement of instructions for specific ,medical decision.
Term
trust
Definition
a legal document that gives a named trustee the authority to manage the assets in an estate on behave of the beneficiaries.
Term
probate court
Definition
the government institution that processes a decreased individuals will and estate
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