Credit, Net Worth, & Investing Flashcards
Certificate of Deposit
Deposit given to a bank for a set term of years. Deposit is paid back when the term is up plus interest.
Dividend
Free stock that is given to investors for holding shares in a stock company.
Liquidity
Assets that can easily be converted to cash or cash itself.
Credit
A loan you are given for a certain period of time that you must pay back with interest
Credit Card Pro’s
Perks, Builds Credit
Credit Card Con’s
High Interest, easy to get in substantial debt
Credit Score
300-850 Range, based on your ability to pay back loans, make payments on time, how many sources of credit you have,
Credit Card Interest
Can be avoided by paying the balance of your credit card within 30 days
Net Worth
Your assets - your liabilities
Assets
House, Car, Cash, Stocks, etc..
Liabilities
Any source of debt
Risk Tolerance
The amount of risk you are willing to take when investing
Diversification
Holding a variety of stocks, real estate, cryptocurrency, in your portfolio to keep it diversified.
Bond
Money is given to an entity for a period of time and then it is returned plus interest.
Mutual/Index Fund
A bundle of hundreds or thousands of stocks that an investor can invest in all at one time.
Roth IRA
Investments for retirement are taxed when they are made but are tax free when these investments are pulled out at retirement.
Traditional IRA
Investments for retirement are not taxed when they are made but are taxed when they are pulled out for retirement.
Stock
Company you can invest in that is offered on the market
Share
Piece of a company that you can invest and buy on the market.
