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| internship | Temporary on-the-job training and experience in a particular career or field that is either paid or not paid. |
| introductory rate | A temporary interest rate, frequently called a “teaser rate,” that is offered by the credit card company. Introductory rates are designed to entice borrowers to apply for a specific credit card and often have strict rules that, if violated, cause the rate to adjust to a much higher percentage |
| investment | An item that is purchased with the hope that it will generate income or increase in value in the future |
| investment bank | A financial institution that provides investment-related services such as raising capital, trading securities, and facilitating mergers and acquisitions. |
| investment banker | Someone who acts as an underwriter for corporations issuing securities. Investment bankers also offer advisory services and corporate restructuring, and they also facilitate mergers and acquisitions. |
| IPO (initial public offering) | The first time a company sells shares of its stock to the public. |
| junk bond | A high-risk, high-yield bond of low credit quality. |
| late fee | A fee charged when a payment is not received on time. |
| lawfulness | Behavior that is determined by social institutions and is enforced for the general good. It requires decision makers to resolve issues by applying legal rules |
| lender | A person, or a public or private group, who makes funds available to another with the expectation that the funds will be repaid, plus any interest or fees. |
| liability | An obligation that legally compels an individual to settle a debt—for example, a mortgage or an electric bill. |
| limited liability | The liability of a corporation’s owners for no more than they have invested in the business. Personal assets cannot be seized. |
| limited liability company (LLC) | A business structure that offers membership instead of shares and combines limited liability protections with the option to be taxed as a partnership. |
| liquidity risk | How easily an investment can be bought and sold and/or exchanged for cash. |
| loan officer | The person who serves as the intermediary between borrowers and lending institutions. Loan officers typically work for financial institutions and generally specialize in one area of lending such as commercial, consumer, or mortgage loans |
| market risk | The risk that the value of an investment will decrease due to changes in the market. Stock prices, interest rates, exchange rates, and commodity prices as well as other outside forces can affect market risk |
| maturity date | The date when a bond’s principal is repaid to the investor. |
| mergers | The combining of two or more companies into one larger company. |
| minimum payment | The smallest amount a borrower can pay in a billing cycle to keep the account in good standing. |
| mobile banking | A type of banking whereby transactions are made via a smartphone or tablet app. The account holder can transfer money between accounts, pay bills, deposit checks, and monitor account activity. |
| mobile payment | A type of smartphone app that lets an account holder pay people and businesses using a cell phone. Also referred to as mobile money and mobile wallet. |
| money | A current medium of exchange in the form of coins and banknotes |
| money market | The financial market for short-term borrowing and lending. |
| money market account | A type of savings account that offers higher interest rates, with higher minimum deposit levels than a regular savings account. |
| morals | Principles concerned with the goodness or badness of human action and character. |
| mortgage | A loan used to purchase a home. The property is used as security. |
| mortgage loan processor | A person who prepares mortgage loan files by reviewing loan applications, clarifying or obtaining additional information, confirming mortgage loan application information by mailing verification forms and contacting verification sources, and obtaining mortgage loan documentation by ordering credit reports, appraisals, titles, and related information. |
| municipal bond | A bond issued by the state or local government. The unique benefit of municipal bonds is that their interest is exempt from federal taxation. |
| mutual funds | Investment products that combine the money from a large group of investors to buy stocks and other investments. |
| NASDAQ (National Association of Securities Dealers Automated Quotations | The largest electronic stock exchange in the United States, founded in 1971. Unlike the NYSE, it has no physical location and exists entirely in cyberspace |
| National Credit Union Administration (NCUA) | An independent federal agency that serves to supervise and regulate federal credit unions. It also provides account insurance for many state-chartered credit unions through the National Credit Union Share Insurance Fund. |
| net worth or wealth | The value of a person's, community's, company's, or country's assets less the amount of their liabilities. |
| New York Stock Exchange (NYSE) | The oldest and largest securities market in the United States, founded in 1972. It is located on Wall Street in New York |
| NYSE MKT (formally known as AMEX) | An American stock exchange located in New York. Its core business revolves around small to mid-size stocks, options, and ETFs. It has a reputation for holding the most liberal policies concerning company listings |
| option | The right, but not the obligation, to buy or sell a specific item (commodity, currency, security, stock and so on) at a fixed price on a specific date. |
| over-the-limit fee | A fee charged to credit borrowers who exceed their credit limit. |
| Panic of 1907 | A financial crisis that happened when the New York Stock Exchange crashed. Panic spread through the nation, resulting in many runs on banks and bank failures. It led to the creation of the Federal Reserve System. Also known as the Bankers’ Panic. |
| partnership | Business owned by two or more people. |
| partnership agreement | A contract (usually drawn up by a lawyer) that states how the partnership will be organized. |
| passive income | Earnings received from rental property or other business activity where the individual is not actively involved (such as royalties from publishing a book). |
| pension funds | Financial products that specialize in gathering payments into retirement funds and investing those payments so that they can accumulate to provide income at retirement. |
| personal installment loan | A type of loan that has a set number of payments and is repaid with interest over a specific period of time. |
| portfolio income | Income from investments, including dividends, interest, or the sale of a property |
| present value | The value of a future cash stream discounted at the appropriate market interest rate |
| private equity | Refers to investors and funds that make investments directly into private companies, i.e., those not listed on any stock exchange. Very wealthy investors are often interested in private equity investments. These investors are later compensated when the company goes public (becomes listed on a stock exchange) or when the company is sold or merges with another company. |
| profit maximization | The process by which a firm makes the most income. |
| reconciliation | The process of comparing two sets of records and getting them to correspond. |
| resume | A written summary of work experience, education, and skills to give to prospective employers. |
| risk | Degree of uncertainty of return on an asset; the possibility of loss. |
| risk tolerance | A measure of an investor’s ability to cope with the value of their portfolio going up and down. |
