Glossary Terms:

Here's Your Chance to Make Millions in the Stock Market (Part 3)

Glossary terms from:
http://www.econedlink.org/e335


Bank

A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.

Bond

A certificate of indebtedness issued by a government or a publicly held corporation, promising to repay borrowed money to the lender at a fixed rate of interest and at a specified time.

Business

Any activity or organization that produces or exchanges goods or services for a profit.

Capital

Resources and goods made and used to produce other goods and services. Examples include buildings, machinery, tools and equipment. In the context of credit transactions, capital is one of the Three Cs of Credit. It is an indicator of how creditworthy a prospective borrower is likely to be as determined by the borrower's current financial assets and net worth.

Cash

Money in the form of paper currency or coins (as distinct from checks, money orders or credit).

Dividend

A share of a company's net profits paid to stockholders.

Economic Growth

An increase in real output as measured by real GDP or per capita real GDP.

Economics

The study of how people, firms and societies choose to allocate scarce resources with alternative uses.

Federal Reserve

The central bank of the United States. Its main function is controlling the money supply through monetary policy. The Federal Reserve System divides the country into 12 districts, each with its own Federal Reserve bank. Each district bank is directed by its nine-person board of directors. The Board of Governors, which is made up of seven members appointed by the President and confirmed by the Senate to 14-year terms, directs the nation's monetary policy and the overall activities of the Federal Reserve. The Federal Open Market Committee is the official policy-making body; it is made up of the members of the Board of Governors and five of the district bank presidents.

Fraud

Wrongful or criminal deception intended to manipulate a person for the purpose of gain, usually financial.

Goal

Something a person or organization plans to achieve in the future; an aim or desired result.

Interest

Money paid regularly, at a particular rate, for the use of borrowed money.

Interest Rate

The price paid for using someone else's money, expressed as a percentage of the amount borrowed.

Investing

The process of putting money someplace with the intention of making a financial gain. Investment possibilities include stocks, bonds, mutual funds, real estate, and other financial instruments or ventures.

Investment

The purchase of capital goods (including machinery, technology or new buildings) that are used to produce goods and services. In personal finance, the amount of money invested in stocks, bonds, mutual funds and other investment instruments.

Markets

Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Portfolio

A person's or an institution's collection of savings and investments.

Price

The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.

Return

Earnings from an investment, usually expressed as an annual percentage.

Saving

Disposable income (income after taxes) minus consumption spending.

Stock

An ownership share or shares of ownership in a corporation.

Stock Market

A market in which the public trades stock that someone already owns; the buying and selling of stock.

Trade

The exchange of goods and services for money or other goods and services.

Workers

People employed to do work, producing goods and services.