Terms
Function involving money management matters.
What is finance?
The most common, they accept deposits (checking/savings) and provide loans (mortgages, business loans) to the public, focusing on profit and everyday transactions.
What is bank?
when you sell an asset for more than what you paid for it.
what is capital gain
Extremely high public profile due to Tesla, SpaceX, and X (Twitter), often in headlines.
Who is Elon Musk?
A type of security that signifies ownership in a corporation and represents a claim on a part of the company's assets and earnings.
what is stock?
Record keeping activities.
what is Accounting?
Member-owned, nonprofit institutions offering similar services to banks but with a focus on member benefit, often with better rates.
what is credit union?
the money coming in and going out of your hands.
what is cash flow
Founder of Amazon, very famous, though perhaps slightly less personally "out there" than Musk
Who is Jeff Bezos?
A risk management strategy that mixes a wide variety of investments within a portfolio (e.g., stocks, bonds, real estate) to mitigate the impact of poor performance by a single asset.
Diversification
Valuable things you own, like cash, property, investments (stocks/bonds), or even a car.
What is Asset?
Focus on complex financial activities like underwriting securities (IPOs), mergers & acquisitions (M&A), and trading for corporations and governments, not typically retail customers.
what is investment banks?
Money earned or received.
what is income?
Founder of Meta (Facebook), very well-known from social media presence and tech.
Who is Mark Zuckerberg?
Lending money to a government or corporation in exchange for regular interest payments and the return of the principal at maturity.
What is a Bond?
A snapshot of your financial health calculated as your total Assets minus your total Liabilities.
What is Net worth?
Collect premiums, pool risk, and provide payouts for losses (health, auto, life insurance), acting as major investors in the financial markets.
what is insurance companies
the additional money individuals must pay when borrowing money
what is interest?
Head of LVMH (Louis Vuitton Moët Hennessy), a global luxury goods giant, very rich but less of a pop culture figure than the tech founders.
Who is Bernard Arnault?
The profit or loss made on the sale of an asset or investment
what is Capital Gain/Loss?
This involves earning interest on both the original principal amount and on all accumulated interest from previous periods. It is slightly more complex than simple interest as it involves an accelerating growth effect over time.
What is Compound Interest?
Facilitate the buying and selling of securities (stocks, bonds) for investors, providing platforms and advice for wealth management.
what is brokerage firms?
money that a business owes to suppliers and creditors for the goods or services it has received but not yet paid for.
what is accounts payable?
Heiress to L'Oréal, known for inheriting a massive fortune rather than building it publicly, making her less known in daily life.
Who is Françoise Bettencourt Meyers?
A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the initial cost.
What is Return on Investment?