+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
The act of redirecting resources from being consumed today so that they may create benefits in the future; the uses of assets to earn income or profit.
|
|
Financial System
|
The network of structures and mechanisms that allows the transfer of money between savers and borrowers
|
|
Diversification
|
The strategy of spreading out investments to reduce risk
|
|
Portfolio
|
A collection of financial assets
|
|
Financial Asset
|
Claim on the property or income of a borrower
|
|
Prospectus
|
An investment report that provides information to potential investors
|
|
Return
|
The money an investor receives above and beyond the sum of money initially invested
|
|
the interest rate that a bond issuer will pay to the bondholder
|
|
Maturity
|
The time at which payment to a bondholder is due
|
|
Par Value
|
A bond’s stated value, to be paid to the bondholder at maturity
|
|
Yield
|
The annual rate of return on a bond if the bond is held to maturity
|
|
Savings Bond
|
a low-denomination bond issued by the United States Government
|
|
Inflation-indexed bond
|
a bond that protects the investor against inflation by its linkage to an index of inflation
|
|
Municipal bond
|
A bond issued by a state or local government to a municipality to finance a public project
|
|
Corporate Bond
|
|
