| A | B |
|---|
| checkbook register | A booklet used to record checking account transactions. |
| special endorsement | An endorsement that transfers the right to cash a check to someone else. |
| restrictive endorsement | An endorsement that limits the use of a check. |
| bank reconciliation | The process of matching your checkbook register with the bank statment. |
| canceled check | A check that has cleared your account. |
| demand deposit | A type of bank account from which funds may be withdrawn at any time. |
| check | A written order to a bank to pay the amount stated to the person or business named on it. |
| floating a check | Writing a check and hoping to cover it with a deposit before it clears. ( |
| overdraft | A check written for more money than your account contains. |
| annual fee | an amount charge card companies levy for the right to use or carry their card. |
| APR | annual percentage rate |
| bankruptcy | the state of being or becoming bankrupt |
| co-signer | is someone who will take responsibility to pay your bills if you are unable to pay them yourself |
| credit union | is similar to a bank, where you can get a checking/savings account, but has members instead of customers. |
| credit bureau | A company that collects information about your credit and gives out a credit report to banks and credit card companies is called a |
| credit line | A line of credit is any credit source extended to a government, business or individual by a bank or other financial institu |
| creditor | creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed |
| credit rating | classification of credit risk based on investigation of a customer's or potential customer's financial resources, prior payment pattern, and personal history or degree of personal responsibility for debts incurred |
| credit report | A detailed report of an individual's credit history prepared by a credit bureau and used by a lender to in determining a loan applicant's creditworthiness |
| finance charge | is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit |
| grace period | period of time after a payment becomes due, as of a loan or life-insurance premium, before one is subject to penalties or late charges or before the loan or policy is canceled |
| interest | Payment in exchange for the use of money over time. You can earn interest by lending your money to a bank. In addition, you pay interest when you borrow money from a bank. The rate of payment can either be fixed or variable throughout the life of the loan or deposit. |
| principal | The amount that one borrows. For example, if one borrows $100,000, the principal amount is $100,000. Interest is calculated over the principal (and often over unpaid interest that accumulates). |
| incentive buying | Premium in the form of extra merchandise, a discount or a gift, offered to the prospective purchaser of an item or service in the hope that this bonus will motivate the purchase of the item. |
| credit score | Your credit score is a 3-digit number calculated off the information in your credit report. Your credit score is integral in helping lenders determine how much of a credit risk you are |
| interest rate | A rate which is charged or paid for the use of money. |
| 5 C's of Credit | Character, capacity, capital, collateral, and conditions |
| credit limit | is a certain amount of money that you are allowed to borrow when using a credit card. |
| Collateral | security pledged for the payment of a loan: He gave the bank some stocks and bonds as collateral for the money he borrowed |
| bear market | a market condition that occurs when investors are pessimistic about the economy and sell stocks. |
| blue chip stocks | Large, national company witha solid record of earnings and/or dividend growth and a reputation for high quality management and/or products. These stocks are expected to provide their investors with a sizeable return despite the ups and downs of the economy. |
| dividends | the portion of the corporation's profits that are paid to each stockholder. |
| DJIA | a |
| NASDAQ | National Association of Securities Dealers Automated Quotations. Largest electronic screen based equity securities trading market in the US - 2nd largest by market capitalization in the world. |
| speculative stocks | A stock which is considered to be very risky, in comparison with its expected return. One example of an often speculative stock is a penny stock. |
| S&P 500 | an index that measures the activity of 500 stocks |
| stock symbol | A stock symbol or ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. |
| financial market risk | Day to day potential for an investor to experience losses from fluctuations in securities prices. |
| global investment risk | Possibility of a reduction in value of an insurance instrument resulting from a decrease in the value of the assets incorporated in the investment portfolio underlying the insurance instrument. This reduction can also be effected by a change in the interest rate |
| inflation risk | The risk borne by an interest bearing asset, such as a loan or a bond. As rates rise, the price of a fixted rate bond will fall |
| coroporate and govenrment bonds | A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default. Corporate bonds are considered higher risk than government bonds. As a result, interest rates are almost always higher, even for top-flight credit quality companies. |
| mutual funds | A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings. |
| real estate | Land, including all the natural resources and permanent buildings on it. |
| NYSE | A stock exchange based in NYC which is considered the largest equity-based exchange in the world. |
| stockbroker | One that acts as an agent in the buying and selling of stocks or other securities |
| interest rate risk | The risk due to variability of interest rates. As rates rise, the price of a fixed rate bond will fall and vice versa. |
| stock financing | Like accounts receivable financing, stock financing offers a flexible loan that allows companies to financially cushion peaks in their stock building. The level of stock financing depends on the type of stock and the nature of the customers. For example, a higher percentage of loan can be granted for presold stocks. Stock financing is always provided in combination with accounts receivable financing |
| portfolio diversication | Combined holidngs that are spread out across many different types of investments so that there is less risk. |
| buisness failure risk | The risk that a company will go bankrupt. |
| 529 plans | A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996 |
| equity financing | This is when a company raises money by issuing stock |
| Commission | A fee paid to an agent for a service, usually a percentage of the total amount |
| bull market | a market conditon that occurs when investors are optimistic about the economy buying stock. Becasue of the greater demand for stock, the value of many stocks and the value of the stock market as a whole increases. |
