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- Rosati-Kain High School
- Personal Finance Planning Personal Finance
- Mueller
- Personal Finance Definitions
Personal Finance Definitions
Personal Finance Planning Personal Finance with Mueller at Rosati-Kain High School
About this deck
By: Jill Griebel
Created: 2011-05-16
Size: 67 flashcards
Views: 37
Created: 2011-05-16
Size: 67 flashcards
Views: 37
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Mutual Funds
investors pool their money to buy stocks, bonds, and other securities based on the selections of professional managers
closed-end fund
a fixed number of shares that are issues
open-end fund
an unlimited numbers of shares
No loaded funds
no commission and no help
front load ( A shares)
charge the 4-6% commission when the shares are purchased
Back end load (B shares)
charge the commission when the shares are sold
4 main asset groups of mutual funds
1. stock mutual funds
2. blended or mixed or balanced or mutual funds
3. bond mutual funds
4. money market funds
2. blended or mixed or balanced or mutual funds
3. bond mutual funds
4. money market funds
net asset value (NAV)
this is the price at which investors buy and sell fund shares from a fund company. Amount of shares of a mutual fund worth.
expense ratio
an annual charge that is a fixed percent of the fund's asset value. All mutual funds charge this.
12(b)-1 fee
a fee for marketing and distribution charge
Index Fund
type of mutual fund constructed to match or track the components of a market index such as the S&P 500
target retirement funds (asset allocation fund)
automatically adjust their asset allocation toward more conservative investments as their retirement date draws near.
income dividends
the earnings a fund pays to the shareholders
capital gain distribution
payments made to shareholders that result from the sale of securities inside the mutual fund
capital gain
when the shareholder sells shares in a mutual fund at a profit
Bonds (IOUs)
a certificate acknowledging a loan from the lender to the government or a corporation for a specific time at a specific interest rate.
maturity date
date at which the bond matures and the final payment is made to the investor
par value
(face value or principal) price an investor pays for a bond
US savings bonds
issued at half the face value and will mature at the face value at a date determined by the interest rate. FDIC insured
coupon (interest bonds)
pays out an interest payment (called the coupon) to the investor every 6 months
zero-coupon bond
investors buy the bond at a reduced face value and at the maturity date the investor receives one payment
private company
doesnt sell shares to the public
public company
company with publicly traded shares that anyone can buy in the stock market
parent company
a business that controls another by owning most or all of that company's stock
common stock
basic ownership of a company that usually has voting rights and owns most of the company profit or bears most of its losses
preferred stock
shares of a company's ownership that have no voting rights but usually have a guaranteed dividend that must be paid before paying any dividends to common stockholders.
Bodily-Injury Liability
coverage pays off when the insured has caused an accident and people require medical care (them and the other people).
Property-Damage Liability
the insured causes an accident that damages another persons property such as car or fence.
Collision
this coverage pays for damages to the insured person's car when he or she causes the accident. Most require a deductible.
Comprehensive insurance
this coverage pays for damages to the insured's car caused by things other than an accident such as theft or hail. (deductible)
Medical Payments
covers medical and death benefits for you and your family members or other passengers who are hurt in an accident no matter who's at fault.
Uninsured and Under insured Motorist
when the other driver causes an accident but does not have insurance
FICO score
credit score developed by the Fair Isaac & Co. Ranges between 300-850 and determines your credit history.
Truth Lending Act
requires that creditors disclose the cost of the credit in simple terms
Fair Credit Reporting Act
governs the activities of credit bureaus and creditors to complete accurate information on your credit history.
Personal Financial Statement
provides information about your current financial position
Where should you keep your financial documents?
home file, safe deposit box, home computer
assets
things you own
assets - liability = net worth
assets - liability = net worth
liabilities
debts you owe
insolvent
negative net worth
~liabilities = more than assets
~liabilities = more than assets
solvent
positive net worth
~assets=more than liabilities
~assets=more than liabilities
cash flow statement
the money that goes in and out every month
fixed expenses
regular monthly payments
variable expenses
changes from month to month
mediation
the attempt by a neutral 3rd party to resolve the dispute- not legally binding
arbitration
the attempt by a neutral 3rd party to resolve the dispute only is legally binding
small claims court
decision of the judge is final
service
a task that a person performs for you
goods
a physical item that can be produced and can be weighed or measured
consumable goods
purchased often and used up quickly (food, gas)
Durable goods
expensive items you don't purchase often (car)
intangible items
cannot be touched but are important to you (education)
interest
price paid for borrowing another money
principal
the original amount of money on deposit
future value
amount your original deposit will be worth in the future based on a specific interest rate over a specific amount of time
annuity
a series of equal regular deposits
simple interest
principal x rate x time
rule of 72
72/ % = # of years
career
a commitment to work in a field that you find interesting and fulfilling
job
work that you do to mainly earn money
resume
one page summary of your education, training, experience and qualifications
cover letter
a personal letter that you present along with your resume that tells the employer why you are interested
gross pay
total amount of salary paid before any deductions are taken out
net pay
amount of salary received after taxes and deductions have been taken out
taxes
payments made to the government that are withheld from income
FICA
1. Social Security
2. Medicare
2. Medicare
About this deck
By: Jill Griebel
Created: 2011-05-16
Size: 67 flashcards
Views: 37
Created: 2011-05-16
Size: 67 flashcards
Views: 37
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have been getting MUCH better grades on all my tests for school. Flash cards, notes, and quizzes are great on here. Thanks!”
Kathy
Kathy