Credit & Banking
A payment card, usually issued by a bank, allowing its users to purchase goods or services, or withdraw cash, on credit. Using the card thus accrues debt that has to be repaid later
What is a credit card?
All the shares by which ownership of a corporation or company is divided
What is a stock?
A loan an investor makes to a government or company, which is the repaid with interest
What is a bond?
What do the letters NYSE stand for?
An estimate of income and expenditure for a set period of time
What is a budget?
A credit card give you access to a line of credit issued by a bank, while debit cards deduct money directly from your bank account
What is the difference between a credit card and a debit card?
Fractional ownership of the corporation in proportion to the total number of shares
What does it mean to own a share of a company?
The US Department of the Treasury
Who issues government bonds in the United States?
Technology and growth-oriented companies, though it includes companies from many sectors like telecommunications, consumer discretionary, healthcare, and industrials
What does NASDAQ mainly list?
The interest earned on both the initial principal and the accumulated interest from previous periods, often described as "interest on interest"
What is compound interest?
A prediction of your credit behavior, such as how likely you are to pay a loan back on time
What is a credit score used for?
A distribution of a portion of a company's earnings to its shareholders, as decided by the board of directors
What is a dividend?
A bond is a loan to an entity that pays a fixed interest rate, while a stock represents partial ownership in a company
How is a bond different from a stock?
A period when stock prices are rising and investor sentiment is optimistic, typically defined as a sustained increase of 20% or more off of recent lows
What is a bull market?
The rate at which the prices of goods and services increase over time, which decreases the purchasing power of money
What is inflation?
You will likely face late fees and a higher penalty interest rate, which will damage your credit score
What happens if you don’t pay your credit card bill on time?
A trading network that connects investors looking to buy and sell stocks and their derivatives
What is the stock market?
The extra charge you pay to the lender for using their funds
What is interest?
A period when stock prices are falling and investor sentiment is less optimistic
What is a bear market?
A measure of an individual's or company's financial health, calculated by subtracting total liabilities from total assets
What does net worth mean?
Pay your bills on time every month
What is one way to build good credit?
A private company is usually owned by its founders, management, and/or a group of private investors. A public company has sold a portion of itself to the public via an initial public offering (IPO)
What is the difference between a public and private company?
Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and the inability to be overdrawn.
What is a savings account?
Spreading money across a variety of assets to reduce risk
What is diversification in investing?
Earnings from a source that requires minimal effort to maintain after an initial investment of time or money
What is passive income?