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investing and estate
chapter 12
26
Biology
10th Grade
03/26/2012

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Term
Appreciation
Definition
Refers to an increase in the value of an investment.
Term
Captial gain
Definition
is income earned when the selling price is greater than the purchase price .
Term
Dividend
Definition
is a portion of a compan's earnings paid to stockholders .
Term
Common stock
Definition
earn dividends declared by the company
Term
Perferred stock
Definition
reveive regular dividends at a set rate
Term
Stock
Definition
is a share in the ownership of a corporation
Term
Securities exchange
Definition
is a formal market where securities are bought and sold by stockbrokers.
Term
Stockbroker
Definition
is an agent who buys and sells securities for clients
Term
Bond
Definition
is a certificate of a debt issused by a corporation or goverment .
Term
Mutual fund
Definition
is created by pooling the money of many people and investing it in a collection of securities .
Term
Net assest value
Definition
is the fund's assests minus its liabilities.
Term
Money market fund
Definition
is a type of mutual fund tha deals only in high interest , short-teerm investments , such as U .S. Treasury securities , certificates of deposit , and commerical paper .
Term
Bull market
Definition
is an extended period of sonsumer confindence and optimism when stock prices rise
Term
Bear market
Definition
is an extended period of uncertainty and pessimism when stock prices fall .
Term
Investment portfolio
Definition
is a collection of securities and other assets a person owns .
Term
Diversification
Definition
refers to spreading risk by putting money in a variety of investments
Term
Prospectus
Definition
is a legal document that gives a detailed descripiton of a security .
Term
Dollar-cost averaging
Definition
is a strategy of investion a fixed dollar amount a regular intervals
Term
Annuity
Definition
is a contract with an insurance company that provides regular income for a set period of time , usuall for life .
Term
Estate
Definition
refers to the assets and liabilities a person leaves when he or she dies .
Term
Executor
Definition
is a person appinted to carry out the terms outlined in their will
Term
Will
Definition
is a legal document stating a person's wishes for his or her estate after death .
Term
Trustee
Definition
is a person or institution named to manage assets on behalf of the beneficiaries
Term
Living will
Definition
is a statement of insturctions for specific medical treatment if a person becomes unable to make medical decisions
Term
Trust
Definition
is a legal document that gives a named trustee the authority to manage the assets in an estate on behalf of the beneficiaries
Term
Probate court
Definition
is the goverment instiution that processes a deceased individual;s will and estate
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