econ chapter 6
individual who invest in corporation and share in the company's profits are known as
stockholders
is sold by local or state government. interest by federal government
tax-exempt bond
savings bond sell for less than their face value because
they pay interest
savings plan that require savers to leave their funds on deposit for certain periods of time
time deposits
a large investment sold by the treasury department. matures in a few days to 26 weeks
treasury bills
mature in 30 days & have minimum amount of $1,000 and sold by federal gov
treasury bonds
mature in 30 days and have a minimum amount of $1,00
treasury bonds
maturity dates of 2 to 10 days and minimum amount of $1,000
treasury notes
The Dow's Jones industrial average is
a stock index
allows a person earning less than $30,000 to contribute up to $4,000 a year and to deduct those contributions from taxable income
IRA
money market deposit account
account with relatively high rates of interest, requires minimum balance, & immediate access to funds
the FDIC insures
accounts at all financial institutions
person who act as a go-between for buyers and sellers of stocks & bonds
broker
profits earned on the sale of stocks are known as
capital gains
states the amount of deposit, the maturity, and the rate of interest being paid
certificate of deposit
spreading of investment among several different types to lower overall risks
diversification
bondholders earn - from the borrowing company or government
interest
allows self-employed people to set aside a maximum of 15 percent of income up to a specified amount each year and deduct that amount from their yearly taxable income
keogh plan
bond provides
lower level of a risk then a stock
period of time at the end of which time deposits will pay a stated rate of interest
maturity
uses investors money to make short-term loans to businesses and banks
money market fund
an easy way to invest in a variety of stocks and bonds is to participate
mutual funds
electronic purchase and sale of stocks and bonds
over the counter market
is an investment in ones own home, condominium, or co-op and has often proven to be wise
real estate
pension plans are provided by many companies to help employees save for
retirment
an account that pays interest, has no maturity date, and from which you can withdraw funds without penalty is a
savings account