Resource Management

in one central location

Where are stock trades on the New York Stock Exchange completed?

bond

a written promise to pay a debt by a specific date

automatic payroll deduction

authorizing your employer to deposit a certain amount of each paycheck into your savings

prospectus

mutual funds are required by law to provide investors with ___ that describes how the fund is operated, the fund's investing objectives, and the fees that it charges

dividend

share of a company's profits

savings and loan associations

specializes in lending to consumers that want to buy homes

equity

the difference between the amount owed on a home and the home's value

face value of a bond

the dollar value printed on a bond

T/F False

A credit union is a financial institution that serves individuals and businesses with a wide variety of accounts, loans, and other financial services.

T/F True

Almost all deposits are insured by a federal government agency.

T/F False

Consumers should look for investments that promise a bigger return for a lower risk than seems reasonable.

T/F True

Credit cards are usually one of the most expensive forms of borrowing.

T/F False

Interest on an unsecured loan is usually lower than on a secured loan

T/F False

Married couples should have credit in only one of their names

T/F True

Money market accounts usually pay higher interest rates than regular savings accounts.

T/F True

Simple interest is earned on just your principal, not on the interest earned previously.

T/F False

T/F If you invest carefully you don't have to take risks

T/F True

T/F The amount of your return on stock you own depends on how much profit the corporation makes and how much stock you own

brokerage firm

a company that specializes in helping people buy or sell stocks and bonds

mutual fund

a group of investments owned by many investors

preferred stock

a nonvoting share that pays a fixed dividend

IRA

a personal retirement savings plan with special tax benefits but not employer sponsored

common stock

a voting share of stock that does not receive a set dividend

credit unions

financial institutions that offer memberships to people who share a common bond, such as people in a particular profession, company, or labor union

simple interest

interest payed annually at the end of the year on the average balance in a savings account

compound interest

interest that is paid on the principal and also on previously earned interest, assuming that the interest is left in the account

The Securities Exchange Commission

responsible for enforcing federal laws concerning the trading of stocks and bonds

load

sales fee that you pay when you invest in a mutual fund

investing

saving in a way that earns income

credit limit

the maximum amount you are allowed to charge on your account

finance charge

the total cost a borrower must pay for a loan, including all interest and fees

insider trading

trading stock based on information that is available on the Internet