Investing Vocabulary Flashcards
Assets
Items of value
Blue chip shares
Very safe and secure shares
Capital gains tax
Tax paid on the profits you receive from the increased values of assets such a shares and property
Capital growth
The increasing value of an asset over time
Company tax
A tax on the profit of companies
Cryptocurrency
Digital currency in which encryption techniques are used to verify transfers of money and regulate the production of units of currency
Dividend
Part of a company’s profit that is divided amongst shareholders
Economy
All activities undertaken for the purpose of production, distribution and consumption of goods and services in a region or country
Entrepreneur
A person seeking to start a successful business in a new field whose methods are often seen as innovative
Ethical
Acceptable to society’s current standards
Fixed interest rate
An interest rate that remains the same for the duration of a loan
Income and expenditure account
An ongoing record of income earned and money spent during the previous weeks
Investment
An asset purchased that is expected to appreciate in value over time and provide profit to the investor OR the use of money to purchase equipment or premises for the establishment or expansion of a business
Investment portfolio
All the investments owned by an individual
Managed fund
A pool of money that comes from people with similar investment goals, and invested in assets such as shares/property, by a fund manager
Market(s)
An exchange of goods, services or resources between buyers and sellers
Mortgage
A loan from a financial institution where something is held as security in case the loan is not repaid, usually a house
Rate of return
The profit you receive on your investment as a percentage of your original investment
Share
Partial ownership of a company
Sharemarket
A place where shares in public companies are bought and sold
Stockbroker
Individual or firm that specialises in the buying and selling of shares
Superannuation
Money set aside and saved for you whilst you work for retirement
Super(annuation)fund
A managed fund designed specifically to produce benefits when you retire, usually invests super to make a profit on your behalf
Unsecured note
Similar to a debenture, a document issued by a firm when you lend it money, stating the amount, interest and term of the investment. A unsecured note holder is one of the last to be repaid if a firm is liquidated
Variable interest rate
Interest rate that moves up and down depending on market forces
