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24 Cards in this Set
- Front
- Back
bear market |
period in the stock market when prices are steadily decreasing |
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bond |
a debt instrument issued by a corporation or government |
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bull market |
period in the stock market when prices are steadily increasing |
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contingencies |
unplanned or possible events |
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diversification |
holding a variety of investments for the purpose of reducing overall risk |
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dollar cost-averaging |
investing the same amount of money on a regular basis regardless of market conditions |
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emergency fund |
money set aside for unplanned expenses |
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estate |
all that a person owns, less debts owed, at the time of that person's death |
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financial market |
a place where investments are bought and sold |
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financial security |
ability to meet current and future needs while living comfortably |
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foundation |
a fund or an organization established and maintained for the purpose of supporting an institution or cause |
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industry risk |
chance that factors affecting an industry as a whole will negatively affect the value of an investment |
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inflation risk |
chance that the rate of inflation will be higher than your investment rate of return |
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investing |
a strategy to earn more on your money than the rate of investing |
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investment portfolio |
a collection of assets that provides diversification for an investor |
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investment tracking |
technique for making investment choices by following the prices of stocks over time |
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liquidity |
a measure of how quickly an asset can be turned into cash |
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market timing |
buying and selling based on what the market is expected to do |
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political risk |
chance that a political event will affect the value of an investment |
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retirement |
a period of time, usually in later years, when you are not working but are able to meet expenses through other income sources |
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stock |
ownership interest in a publicly held company |
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stock risk |
chance that activities or events affecting a company will change the value of an investment in that company |
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tax deferral |
a postponement of taxes to be payed |
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tax exempt |
not subject to taxation |