Demand and Supply
The relationship between price and quantity supplied, stating that the relationship is a positive one
What is the Law of Supply?
The value today of payments received in the future
What is Present Value?
The up-front payment a home buyer pays for his new home. Typically banks require a certain percentage before they will make the loan
What is a down payment?
Another name for stocks
What are Equities (or Equity)?
A person who starts a new business
What is an entrepreneur?
A type of good where demand increases when income falls
What is an inferior good?
The idea that a dollar today is worth more than a dollar tomorrow. Underlies all topics in finance
A mortgage whose interest is calculated using a rate that changes over the life of the loan based on changes in market interest rates
What is an Adjustable rate mortgage?
An interest payment on a bond
What is a coupon?
The product haggled over in the Negotiations Game
What is a winter coat?
Payment from the government – the opposite of a tax
What is a subsidy
The term describing the exponential growth of interest. The idea that interest is not only earned on principal, but that interest is earned on interest
What is compounding?
The calculation process used keep payments level and interest rate constant when the loan balance is continually changing
What is amortization?
Price multiplied by shares outstanding (held by the public). An indication of the size of a company.
What is market capitalization?
The names of our 2 guest speakers
Who is Kurt Billick and Rich Lyons?