Debt
Will be responsible for the debt if you stop making payments or default on the loan
What are Co-Signers?
Amount of money charged for using credit
What is a fee?
The distribution of investments among several companies to lessen the risk of loss
What is diversification?
Financial assets that represent loans to corporations, municipalities, governments or their agencies.
What are bonds?
The process of communicating the value of a product or service to customers.
What is marketing?
The ability to borrow money with the agreement to pay it back later.
What is credit?
Wealth in the form of money or assets (net worth)
What is capital?
A person who owns stock in a company and is eligible to share in profits and losses.
What is a stockholder/shareholder?
Is the original value of the bond
What is face value?
When you wake up the next day and regret your purchase.
What is buyer's remorse?
Usually 3-5% of the balance owed at the end of the billing period
What is a minimum payment?
A number that helps evaluate how much of a risk it is to lend you money
What is a credit score?
Value of the stock increases.
What is stock appreciation?
Government issued and government backed. Savings bonds can be purchased in denominations from $50 to $10,000.
What is a U.S. savings bond?
When marketing causes you to position a product in your mind to be associated with a certain value.
What is brand recognition?
Is the interest rate the credit card company charges you.
Annual Percentage Rate (APR)
Credit cards that banks offer to people that want to establish, strengthen or rebuild their credit history
What are secured credit cards?
A share of profits paid to a stockholder
What is a dividend?
Securities with terms of 20 or 30 years. Interest is paid semiannually.
What is a treasury bond?
Refers to the financial opportunity that is given up because you choose to do something else with your money
What is opportunity cost?
Specific asset (such as cash, land, building, cars) pledged as a secondary (and subordinate) security by a borrower or lender in case a borrower defaults.
What is collateral?
The company that handles the production of credit scores. Their initials are usually said before each credit score.
What is FICO (Fair Isaac Company)
Refers to the total value of a company in the stock market.
What is market cap?
Low-risk savings product that earn interest while protecting you from inflation. Sold at face value.
What is an I bond?
Caveat emptor is Latin for this phrase.
What is buyer beware?