Free Economics Flashcards about 12 ECON Vocab 12

12 ECON Vocab 12

study material for economics vocab CH 12 – Ponder

Term Definition
current yield percent of return paid on an investment
money market market where money is loaned for periods of less than one year
financial asset claims to property or income such as a bank deposits
Stockbroker person who buys or sells equities
Roth IRA type of IRA favored by people who plan to retire in a higher tax bracket
Risk situation in which the outcome is not certain but the probabilities of different outcomes can be estimated
equities stocks that represent ownership shares in corporations
pension regular payment made to retired workers who have worked for a company for a minimum number of years
call option right to sell a share of stock at a specified price in the future
bull market strong market with prices moving up for a long period of time
Individual Retirement Account (IRA) long-term, tax-sheltered deposits people set up to help provide income during retirement
capital market market where money is loaned for more than one year
put option finance company firm that makes loans to consumers and buys installment contracts from merchants who sell goods on credit
tax-exempt when the government does not tax interest paid on an investment
put option right to sell a share of stock at a specified price in the future
401(k) plan tax-deferred investment and savings plan to which many employers contribute matching funds
portfolio diversification holding a large number of stocks so that increases in some will offset unexpected declines in others
mutual fund company that sells stock in itself to individual investors and then invests the money in stocks and bonds of other corporations
Standard & Poor’s 500 (S&P500) popular benchmark of stock performance that uses the price changes of 500 representative stocks as an indicator of overall market performance
bear market mean market in which prices of equities decline for a long period of time

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