PHS Chapter 17

estate

what a person leaves behind when he or she dies

bond

a certificate that represents a promise by a company or government to repay a loan on a given date

stock

a certificate that represents ownership of a small portion of a company

overdraft

a check written when there is not enough money in a checking account to cover it

dividend

a distribution of a company's profits to a stockholder

mutual fund

a group of many investments purchased by a company representing many investors

portfolio

a group of securities purchased by a mutual fund for an investor

will

a legal document describing how a person intends for property to be distributed after his or her death

direct deposit

a method of transferring money into an account through electronic means

account statement

a monthly, bimonthly, or quarterly summary of a checking account

certificate of deposit

a type of savings account that pays a set rate of interest on money that is deposited for a set period of time

securities

proof of debt or ownership of a company or government, often in the form of stocks or bonds

endorse

signing the back, left end of a check before cashing or depositing it

diversified

term to describe money invested in many different stocks and bonds, so decreases in some are offset by increases in others

liquidity

the degree to which a person will be able to get cash quickly from a savings account or financial investment

reconciling

the process of comparing the account statement to your check stubs or register to make sure they match