Insurance & Investing

Insured Bonds

A bond with interest and principle payments insured by a third party

Mutual Fund

A bundle of diversified investments to decrease risk

Stock Portfolio

A collection of stocks from different individual corporations

Universal Variable Life Insurance

A form of cash-value life insurance that offers both a death benefit and an investment feature.

Bond Fund

A group of bonds that have been bundled together for investment purposes.

Bull Market

A period of increased stock trading and rising stock prices

Stock Exchange

A place where shares in a company or business enterprise are bought and sold.

Stock Market

A system for buying and selling shares of companies

Face Value

Amount of principal due at the maturity date of the bond

Deductible

Amount you must pay before you begin receiving any benefits from your insurance company

Income (Stock W Dividends)

An income stock is an equity security that pays regular, often steadily increasing dividends, and offers a high yield that may generate

NASDAQ Market

An international market for buying, selling and trading stocks for potential profit.

Stockholder

An owner of one or more shares of a corporation

Renter's Insurance

Coverage for tenant's personal property and premise liability

Risk

Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.

Bear Market

Downward trend in stock prices

Insurance

Financial protection against different kinds of risks

Equities

Financial rights to the assets of a business

Term Life Insurance

Life insurance issued for a particular period, usually five or ten years.

Stock Fund

Mutual funds that sell shares to individuals and invest the proceeds in stocks

Financial Consultants

One who provides financial advice or guidance to customers for compensation.

Speculator

People who invest in a risky venture in the hope of making a large profit

Beneficiary

Person entitled to receive the claim amount and other benefits upon the death of the benefactor or on the maturity of the policy

Long Term Care Insurance

Provides payment for extended nursing care due to accidents, illness, or old age.

Big Board

Referring to the New York Stock Exchange

Growth Stock

Stocks with good prospects for further growth

Risk Tolerance

The degree, amount, or volume of risk that an organization or individual will withstand.

Collision Insurance

Type of auto insurance coverage.

Treasury Notes

United States government obligation with a maturity of 2 to 10 years

Under-Insured

When an individual has an insurance policy that has inadequate coverage.

Bond

a certificate of indebtedness

Portfolio

a collection of financial assets

Unemployment Insurance

a government program that partially protects workers' incomes when they become unemployed

Capital Gain

a profit from the sale of property or of an investment

Money Market Account

a type of savings account that earns the market rate of interest on the money deposited

Stock Symbol

a unique series of letters assigned to a company's stock for trading purposes

Brokers

agent wholesalers who specialize in bringing buyers and sellers together.

Cash Value

amount equal to the replacement cost minus depreciation of a damaged or stolen property at the time of the loss

Annual Deductible

amount of money an individual pays for expenses before his insurance plan starts to pay.

Death Benefit

amount on a life insurance policy

Premium

an amount to be paid for an insurance policy.

Dow Jones Industrial Average

an average of stock prices of major industries

Diversified Portfolio

an investor who has holdings in several different industries

New York Stock Exchange

an organized stock exchange in the secondary market in which stock sales occur

Antiques

art, furniture, or objects that are old and valuable

Insured

contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company

Capital Loss

decrease in value of an asset from the time it was bought to the time it was sold

Non-managed Care Health Insurance

e policy holders to receive care from a network of designated health care providers for the highest level

Dividends

earnings distributed to stockholders

Co-pay

fixed amount for a covered service, paid by a patient to the insurance company before patient receives service from physician

No-fault Insurance

form of automobile insurance designed to enable the policyholder in case of an accident to collect a certain basic compensation promptly for economic loss from his or her own insurance company without determination of liability. adjective

Homeowners Insurance

form of property insurance that covers losses and damages to an individual's house and to assets in the home

Claim

formal request to an insurance company asking for a payment based on the terms of the insurance policy

Property Damage Liability Insurance

helps pay for the damage that you cause to another vehicle, or other types of property

Financial Industry Regulatory Authority

independent regulator securities firms doing business in the United States

S&P 500

index that shows the price changes of 500 different stocks

Mortgage Insurance

insurance policy that protects a mortgage lender or title holder in the event that the borrower defaults on payments, dies, or is otherwise unable to meet the contractual obligations of the mortgage

Collectibles

items of personal interest to collectors that can increase in value in the future

Benefit Period

length of time during which a benefit is paid

Insurance Benefit

length of time during which a benefit is paid

Whole Life Insurance

life insurance that pays a benefit on the death of the insured and also accumulates a cash value.

Managed Care Health Insurance

limits participants to seek health care from a specific list of providers

Secondary Market

market for reselling financial assets

Securities and Exchange Commission

monitors the stock market and enforces laws regulating the sale of stocks and bonds

Speculative

not based in fact

Do Not Put AllYour Eggs In One Basket

one should not concentrate all efforts and resources in one area as one could lose everything

Diversification

operating several businesses in order to spread the risk

Over Insured

paying unnecessary premiums for insurance

Comparison Shopping

practice of comparing prices in advance of actually shopping in order to achieve the best deals and pricing on merchandise and services

Automobile Insurance

provides property, liability and medical coverage

Bond Principal

refers to the initial size of a loan; it can also mean the amount still owed on a loan

Disability Insurance

replaces a portion of one's income if they become unable to work due to illness or injury.

Stockholders' Rights

right to inspect the company's books and records or sue the corporation for misdeeds of the directors and officers

Assigned Risk Pool

risk that may be difficult to find coverage for in the general marketplace

Investing

saving in a way that earns income

Stocks

shares of ownership in a company

Preferred Stocks

special type of stock that companies issue

Blue Chip Stock

stock of an established and historically successful corporation

Securities

stocks and bonds

Investment

the act of putting money, effort, time, etc. into something to make a profit

Liquidity

the ease with which an asset can be converted into the economy's medium of exchange

Primary Market

the market in which new securities are originally sold to investors

Rate of Return

the percentage of increase in the value of your savings from earned interest

Volatility

the tendency of a substance to vaporize

American Stock Exchange

third-largest stock exchange by trading volume in the United States

Treasury Bills

treasury securities with maturities of one year or less