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insures your bank deposits up to $250,000 per account
FDIC FederaI Deposit Insurance Corp.
an item that we desire but that is not essential to survival
Want
something required or essential: food, shelter, transportation, education
Need
an expense that changes from month to month like your food spending or gas spending
Variable Expense
A GOLDEN RULE of personal finance. Put a portion of your paycheck into savings/investments before any other spending.
Pay Yourself First
What you give up when you make one choice over another
Opportunity Cost
expenses which stay basically the same from month to month, such as housing and transportation.
Fixed Expense
a savings account you can access quickly to pay for unexpected expenses or emergencies, usually equal to 3-6 months of your salary
Emergency Fund
the amount of money spent is more than the amount of money collected
Deficit
a plan for making and spending money
Budget
ratio of money gained or earned on an investment
Return on Investment (ROI)
a government bond that is repaid within two to ten years
Treasury Note
A government bond that is repaid within three months to a year.
Treasury Bill
Share of Ownership in a Corporation
Stock
all of the investments, including stocks, bonds, mutual funds, options, and commodities, that are traded
Securities
tracks the prices of 500 different stocks as a measure of overall stock market performance
S & P 500
America's largest electronic stock market. Many technology stocks such as Apple, Microsoft, and Yahoo are traded on this stock exchange
NASDAQ
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
Mutual Fund
the ease with which an asset can be converted into cash
liquidity
The average price of 30 selected industrial stocks, used as a measure of general market trends
Dow Jones
check paid to stockholders, usually quarterly, representing portion of corporate profits
dividend
spreading out investments to reduce risks
diversification
the profit from the sale of an asset such as stocks, bonds, or real estate.
Capital Gain
a stock market with declining stock prices
Bear Market
a period of rising stock prices
Bull Market
A policy designed to cover property that floats, or moves, from location to location.
Floater