NS4 Unit 2 Chap 1
What is an asset
Property owned by a person (Or company) regarded as having value
Liquidity is what
The ease at which an asset can be converted into cash
The rate of return is
the net gain or loss of an investment over a specified period of time
When something becomes mature or gains maturity it means
The date when an investment is repaid to the investor along with earned interest
Payday loans is when someone takes out a short term high cost loan that typically is repaid to the borrowers when and with what?
They are paid back typically the next day with fees
When you take out a loan a grace period is what
The amount of time before interest starts accumulating on charged purchases
When money is returned after a investment ,what is the return?
The money made or lost on an investment over some period of time
Discretionary spending is what
Non necessary spending rather than spending on necessary expenses
The degree of variability that an investor is willing to withstand
Risk tolerance
The amount paid to the bond holder at maturity is known as what
Face value
What does APR stand for and what does it mean
Annual percentage rate and is the yearly rate charged for a loan
Compares how much you owe each month to how much you earn
Debt to income ratio
The chance of being an investment declining in value is called what
Risk
Reconcile is when you
to compare 2 sets of financial records to verify that figures are correct and in agreement
If you own shares in a company what do you own
A percentage of ownership in a company or financial asset
The act of investing in a variety of different industries, areas, and financial instruments
Diversification
Expenses involved for the paperwork and process to officially take ownership
Closing cost
What is the name of money Deducted for taxes from an employee paycheck and sent directly to the government
Withhold
The amount you make before taxes or other deductions are taken out
Gross pay
When something has securities in investment what does this mean
It is a financial investment with some monetary value
The collection of financial investments such as stock, bonds, mutual funds, and cash
Portfolio
A legal arrangement in which a third party temporarily holds sums of money in a seperate account until needed
Escrow
What are expenses that can be subtracted from adjusted gross income to reduce the amount of taxes you owe
itemize deductions
An unexpected profit or gain of money
Windfall
Exempt means
Free from an obligation or liability imposed on others
someone who literally depends on the taxpayer for support
dependent
the name of a retirement investment account offered through employers
401(k)