The institution that creates the market where stocks are bought and sold
What is stock exchange
100
Two ways stock ownership builds wealth
What is stock appreciation and dividends
100
Amount you owe with an obligation to pay back.
What is debt
100
A period of time allowed in which you can pay off new purchases, if there is no old balance, without being charged interest.
What is grace period
100
A basket of stocks selected to
represent some sector or aspect of the market or economy.
What is a stock index
200
Possessions that decrease in value over time
What are depreciating assets
200
Total percentage it costs you yearly to use your credit.
What is APR
200
Assets - Liabilities = ______
What is net worth
200
Bond ownership builds wealth by _____
What is coupon payments
200
Possessions that increase in value over time
What are wealth building assets
300
4 accounts offered by banks
What is savings, checking, certificate of deposit, money market
300
The 5 major types of insurance are
What is home ownership/rent, auto, health, disability, life
300
If the bond is priced lower than its face
value, it is selling at a _______
What is discount
300
The ________ market is where issuers sell their bonds at face value to investors.
What is primary
300
Mr. Kallins owns this type of company
What is a hedge fund
400
5 C's of credit
What is
Collateral
Capital
Capacity
Character
Conditions
400
Maximum amount you can charge on a credit card
What is credit limit
400
This is how often you should check your credit report
What is annually
400
Something of value that lenders can repossess if you are unable to repay a loan as promised.
What is collateral
400
Amount of financial trust (principal) extended to you by a lender.
What is credit
500
Simple interest formula
What is principal*interest*time
500
Current yield formula
What is coupon payment / purchase price
500
Compound Interest Formula
What is
FV = PV (1+j/m)^mt
FV = future value (value after t periods)
PV = present value (initial investment)
j = annual nominal interest rate
m = number of times the interest is compounded per year
t = number of years the money is borrowed for
500
Rule of 72 formula
What is 72 / rate of interest = # of years to double