Investing
A loan to a government or business for a set amount of time with fixed interest
What is a bond?
Taxes paid straight to the government
What are direct taxes?
Not investing everything you have into one area
What is diversify?
Retirement fund that sets aside a portion of income each year. Funds may be withdrawn at 59.5 years old.
What is Individual Retirement Account (IRA)?
Contract stating the terms and conditions of insurance
What is insurance policy?
Share of ownership in many companies
What is a stock?
Taxes that are collected when a person pays for a good or service.
Stock that involves voting privileges and offers dividends
What is common stock?
IRA in which you put money into an account before taxes. Money is taxed when taken out of account.
What is Traditional IRA?
Set amount paid by the insured to have an insurance policy
What is a premium?
Person who trades stock for clients
What is a stockbroker?
Tax system in which the tax rate is the same for all income levels.
What is proportional tax?
Stock that involves no voting rights and fixed dividends
What is preferred stock?
IRA in which deposits are made post-tax and grow in the account tax-free.
What is Roth IRA?
The person buying insurance
What is policy holder?
Betting on the future price of a common good. A legal commitment. The riskiest kind of investment.
What is a future?
Tax system in which a portion of income that goes toward taxes decreases as you earn more income.
What is regressive tax?
Aggressive, Moderate, Conservative
What are levels of risk?
Savings account for specified time period
What is CD?
A request filed by the insured in the event of a loss
What is a claim?
The rate of revenues received for every dollar invested in an item or activity.
What is the return on investment?
Tax system in which the percentage of taxes paid increase as income increases.
What is progressive tax?
What are dividends?
protects your bank deposits
Protection from potential losses, agreeing to pay a premium to avoid higher costs, transferring the risk of loss to the company.
What is insurance?