Types of Investments
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
What is a Stock?
This action increases the number of shares in a company but does not change the total market capitalization (value) of the company; thereby making shares more affordable.
What is a Stock Split?
Why should you always pay the full balance of your credit card bill?
To avoid accruing interest/credit card debt.
You can check THIS ANSWER with any of the 3 credit bureaus. It has a record of your personal information, what lines of credit and debt you have, and payment history of your credit and loans.
Credit Report
Someone who legally agrees to take responsibility for a person's debt if they cannot repay it. You might need this person to help you get a loan if your credit is low/non-existent.
What is a co-signer?
A security in which the investor loans money to a company or government, which then pays regular interest to the holder and returns the principal on the maturity date.
What is a bond?
A market in which there is increased stock trading and rising stock prices
What is a Bull Market?
A person who has permission to use and/or carry another person's credit card, but isn't legally responsible for paying the bill
What 2 categories most heavily affect your credit score?
Credit utilization and payment history
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
Employers offer this type of investment account and sometimes offer matching contributions to it.
What is a 401K?
Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis
What is a Dividend?
The number of days between a borrower's statement date and when payment is due. You have this period of time until the due date to pay the full balance of the statement, without accruing interest.
FICO looks at THIS ANSWER to determine your credit score: the amount of credit you've used compared to the credit limit you have.
credit utilization
How is a fixed rate different from an adjustable rate for mortgages?
Fixed rate: interest rate stays the same
Adjustable rate: it starts the same, but later can change based on market interest rates
An individual retirement account that allows a person to set aside AFTER-TAX income up to a specified amount each year
What is a Roth IRA?
A type of investment fund that rebalances its asset mix over time based on a projected retirement year
What is a Target Date Fund (TDF)?
What are some possible fees that come with a credit card (not including interest).
An annual fee, late payment fee, balance transfer fee, cash advance fee.
What are 3 ways to build your credit score FROM SCRATCH?
- secured credit card
- authorized user of someone's credit card
- get a credit builder loan (no-cosigner needed)
- get a loan with a cosigner AND pay on time/in full.
It's how payments for loans are broken up: part of the payment goes towards paying down interest and the other part goes towards paying down the principal. At the beginning of a loan term, most of the payment goes towards interest. As the loan term continues, more of the payment goes towards the principal.