| A | B |
|---|
| discretionary income | what you have left over after you have paid your bills |
| principal | the amount of money deposited by a saver |
| interest | money paid by a financial institution for use of the saver's money |
| compound interest | interest computed on the original principal plus accumulated interest |
| annual percentage yield (APY) | actual interest rate the account pays per year, with compounding included |
| share account | a savings account at a credit union; save money in form of shares |
| securities | stocks & bonds issued by corporations or the government |
| stockbroker | Works for a brokerage firm and who investors buy & sell securities through |
| liquidity | is the ability of an asset to be converted into cash quickly without loss of value |
| certificate of deposit | deposit that earns a fixed interest rate for a specified length of time |
| maturity date | date on which an investment becomes due for payment |
| money market account | combination savings-investment plan in which money deposited is used to purchases safe, liquid securities |
