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Cash Flow Vocabulary

AB
AssetSomething that put money "in your pocket", with minimum labor.
Balance SheetA snapshot of your assets & liabilities.
CapitalCash or something of an agreed-upon value
Cash FlowCash coming in and cash going out. Cash flow tells a story.
Certificate of DepositA loan to government & businesses, issued through banks, with specified maturity dates and interest rates.
DividendA distribution of profits of a company to shareholders.
DoodadsExpenses, often unnecessary or unexpected, that simply take money out of your pocket.
Down PaymentA percentage of the purchase price an investor pays for an investment.
ForeclosureA bank or individual takes your property for non-payment of the mortgage.
Income StatementA form showing yourincome and expenses over a period of time.
InflationAn economic situation where consumer prices rise.
LiabilitySomething that takes money "out of your pocket" You owe someone.
MortgageWhen you finance real estate and use your home as collateral against amount of money you are borrowing.
Mutual FundA variety of stocks, bonds, or securities, grouped together, managed by a professional investment company and purchased by individual investors through shares.
Passive IncomeIncome generated from your investments such as interest, dividends, and real estate rentals, with minimal work.
Return on InvestmentReturn on cpaital, as a percentage, from an investment.
Shares SplitA corporate action where the number of shares you own increases and the price per share decreases
Tax LienA legal claim on property for unpaid taxes
The MarketWhere products are bought and sold
Trading RangeThe average high and low prices of an investment


Business Educator
Tri-County High School
Wolcott, IN

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