Section 1 Flashcards
Speculative inverstment
A high risk that might turn a large profit in a short time
Dividends
Distributions of money stock or other property that a corporation pays to stockholders
Retained earnings
Profits that a company reinvests usually for expansion or to conduct research and development
Investment liquidity
Ability to buy or sell a investment quickly without substantially reducing its value
Equidity capital
Money that a business gets from its owners in order to operate
Common stock
Unit of ownership of a company and it entitles the peer or stockholder to voting privledges
Preferred stock
Type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive dividends
Corporate bond
Corporations written pledge to repay a specific amount of money along with interest
Government bond
Written pledge of government or municipality suck as a city for regency a specific sum of money with interest
Mutual fund
An investment in which investors pool their money to buy stocks bonds and other securities by professional manager who work for an investment company
Diversification
The process of spreading your assets among several different types of investments to reduce risk
Financial planner
A specialist who is trains to offer specific financial help and advice
Tax exempt income
an income that is not taxed
Tax deferred income
An income that is taxed on a late date
Capital gain
The profit from the safe of assets suck as stocks bonds or real estate
