| A | B |
|---|
| Balance of Trade | The difference between exports and imports |
| Bear Market | A market in which stock prices are falling |
| Bond | An agreement to repay a fixed amount of borrowed money on as specified date, and generally to pay interest at regular intervals |
| Bull Market | A market were stock prices are increasing |
| Capital Gain | An increase in the market value of an asset |
| Consumer Price Index | A statistical measure of the change in the price of consumer goods |
| Convertible Bond | A corporate bond that can be converted into stated number of shares of common stock |
| Cost of Living Adjustments | Changes in retirement payments due to an increase in prices. Often referred to as COLA |
| Depression | A long period of economic decline. |
| Devaluation | An official lowering of a nation's currency value |
| Discount Rate | The rate of interest member banks are charged when borrowing money through the federal reserve system |
| Disposable Income | Income after taxes |
| Diversification | Investing in more than one asset to reduce risk |
| Dividend | Payments by a company to its stock holders |
| Dow Jones Average | An index of stock prices based on the stock prices of 30 companies most of which are on the NY Stock Exchange |
| Federal Deposit Insurance Corp. | FDIC U.S. government sponsored corporation that insures the bank deposits of member banks. Instituted by FDR to revive the US banking industry during the depression |
| Golden Parachute | Provisions in a contract for high level executives when they leave a company |
| Greenmail | A company buying back its own shares for more than market value to avoid a hostile takeover |
| Gross Domestic Product | The market value of all goods and services that have been brought for use during a period of time |
| Individual Retirement Account | IRA, a self-funded individual retirement plan |
| Leveraged Buyout | A takeover of a company where most of the money is borrowed against either future profits or by selling off assets of the company. |
| Liquid Assets | Assets that are in cash or that can easily be converted into cash |
| Per Capita Income | The total income of a group divided by the number of people in that group |
| Recession | A mild decrease in economic activity marked by a decline in real Gross Domestic Product |
| Savings Association Insurance Fund | SAIF, Insuring of accounts in savings and loan associations |
| Short-Selling | Borrowing shares of stock from a brokerage firm and selling them, hoping to buy back the shares at a lower price and realize a profit. |
| Supply-Side Economics | The belief that cutting taxes will result in economic growth |
| Zero Coupon Bond | A corporate or government bond that is issued at a deep discount from the maturity value and pays no interest during the life of the bond but is redeemed for face value |
| Pepsi-Cola | This coany owns such products as: Doritos Chips, Mountain Dew, Tropicana Orange Juice, Aquafina water, and Rice-A-Roni |
| Proctor and Gamble | This company produces Tide Detergent, Vicks cold medicine, Gillete razors, Chairmin Toilet Paper, and Duracell Batteries |
| Mattel | This company produces toys such as American Girl, Barbie, and Hot Wheels Cars |
| Johnson and Johnson | Tylenol |
| Pfizer | Advil |
| Ben Bernanke | Chairman of the Federal Reserve Board |
| Philadelphia, Denver, San Francisco, West Point NY | Four production centers of the U.S. Mint |
| Exxon-Mobil | Largest Corporation based on Revenue |
| Wal-Mart Stores | Largest Retailer based on Revenue |
| NAFTA | North American Free Trade Agreement (Canada, Mexico, and the United States) |
| CAFTA | Central American Free Trade Agreement |
| WTO | World Trade Organization based in Geneva |
