Borrowing
A loan that is repaid in set payments over time.
What is an installment loan?
The analytical process of determining the current (or projected) worth of an asset or a company.
What is "Valuation"?
This is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio.
What is geometric mean?
A stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange and the Nasdaq.
What is the Dow Jones Industrial Average?
A defined-contribution, tax-advantaged retirement savings plan that is sponsored by one's employer.
What is a 401K plan?
This is the combined value of the principal and the simple interest together at a future time.
What is Future Value or Maturity Value?
All activities a company does to promote and sell products or services to consumers.
What is marketing?
This refers to a common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow these when their accountants compile their financial statements.
Generally Accepted Accounting Principles (GAAP)
A unique series of letters assigned to a security for trading purposes.
What is a ticker symbol?
The the percentage of a borrower’s total available credit that is currently being used.
A savings account at your local credit union holds a balance of $5,894 for the entire month of September. The posted simple interest rate is 1.35%. Calculate the amount of interest earned for the month (30 days).
What is $6.54?
Level of production at which the costs of production equal the revenues for a product.
BEP
Measures what a business spends to produce a good or service.
COGS
This is a type of pooled investment security that operates much like a mutual fund. It can be purchased or sold on a stock exchange in the same way that a regular stock can.
ETF
The payment you make for insurance.
What is premium?
A type of loan that allows you to draw funds as you need them and repay the money at a variable interest rate. Your home is your collateral.
What is a HELOC?
Traditional street-side business that offers products and services to its customers face-to-face in an office or store that the business owns or rents.
What is Brick-and-Mortar?
Government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
What is Fiat Money?
The total dollar market value of a company's outstanding shares of stock.
What is Market Capitalization?
This type of insurance is required by your lender if you have a mortgage on a home.
What is homeowner's insurance?
If you place $25,500 into an 80-day short-term GIC at TD Canada Trust earning 0.55% simple interest, how much will you receive when the investment matures?
$25,530.74
This strategy involves selling a product or service at a price that is not profitable but is sold to attract new customers or to sell additional products and services to those customers.
Loss leader strategy
The selling price per unit minus the variable cost per unit.
What is contribution margin?
Formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.
What is the "Rule of 72"?
An estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.
What is a budget?