| A | B |
|---|
| Short-term | needs you expect to have in the next few months |
| Direct Deposit | involves an employer or financial institution placing your paycheck into a bank account |
| Automatic Payment | having money withheld from your paycheck and sent directly to your savings |
| Compound | interest drawn on the sum of the original principal plus interest |
| Interest | money that is paid for the use of money |
| Share Account | a regular account at a credit union |
| Stockbroker | Invesotrs buy and sell securities through this person who usually works for a brokerage firm |
| NCUA | deposits kept in credit unions are insured by this company |
| FDIC | Federal insurance for depositors in commercial banks and svings and loans |
| Risk | The greater this is, the higher the rate of interest you will receive |
| Certificate of Deposit | Money set aside for a specified length of time at a specified rate |
| Money Market Funds | A type of savings plan available through broker or investment firms, which is not covered by the FDIC |
| Liquidity | The capability of financial resources being readily converted to cash |
| Principal | The amount of money you place in savings |
| Discretionary Income | What you have left over to spend for waht you wish after your bills are paid each month |
| Maturity Date | the day on which a certficate must be renewed or cashed in |
| Early Withdrawal | when a CD is cashed before its maturity date, the depositor msut pay this type of penalty |
| Inflation | is a rise in the general level of prices |
| Investing | the use of savings to earn a financial team |
| Investment | the use of meony to earn the best possible return with the least amount of risk |
| Annual report | a document that gives the financial history of a corporation |
| Political Risk | government actions that affect business profits |
| Financial Pages | Sections of newspapers containing financial data |
| Investor Services | provide financial data for interpretation |
| Financial Advisors | professional investment planners |
| Diversification | the spreading of risk among many types of investments |
| Collectibles | itmes that people like to acquire and possibly sell for profit |
| Stock | represents ownership in a corporation |
| Bonds | debt obligations of corporations or a government |
| Mutual Funds | pools money of many investors and buys a large selection of securities |
| Annuity | a contract issued by an insurance company to pay you regular income |
| Discount | contracts to by and sell commodities for a specified price on a specified future date |
| Penny Stock | low-priced stocks of small companies that have no track record |
| Option | the right, but not the obligation, to buy or sell a commodity or stock for a specified price withing a specified time period |
