| A | B |
|---|
| savings | money set aside for the future |
| investing | a strategy to earn more on your money than the rate of inflation |
| emergency fund | money set aside for unplanned expenses |
| contingencies | unplanned or possible events |
| liquidity | a measure of how quickly an asset can be turned into cash |
| wealth | the accumulation of assets over your lifetime |
| financial security | the ability to meet current and future needs while living comforably |
| retirement | the period of time, usually later years, when you are not working and need to meet expenses through other income sources |
| estate | all that a person owns (assets), minus debts owed, at the time of that person's death |
| foundation | a fund or an organization established and maintained for the purpose of supporting an institute or cause |
| return on investment (ROI) | a performance measure used to evaluate the efficiency of an investment |
| investment risk | the potential for change in the valueof an investment |
| inflation risk | the chance that the rate of inflation will rise faster than your investement rate of return |
| bond | a debt instrument that is issued by a corporation or government |
| industry risk | the chance that factors affecting an industry as a whole will affect the value of an investment |
| political risk | the chance that actions takenby the government will affect the value of an investment |
| market risk | the chance that changes ina business cycle will affect the value of an investment |
| nonmarket risk | the chance that events unrelated to market trends will affect the value of an investment |
| stock | ownership interest in a publicly held company |
| company risk | the chance that activities or events that affect a company will change the value of an investment in that company |
| tax deferral | a postponement of taxes to be paid |
| tax-exempt | an investment that is not subject to taxation |
| systematic saving | a strategy that involves regularly setting aside cash that can be used to achieve goals |
| systematic investing | a strategy that involves a planned approach to making investments on a regular basis |
| investment tracking | a technique for making investment choices by following the prices of stocks and other investments over time |
| market timing | buying and selling stocks based on what the market is expected to do |
| dollar-cost averaging | investing the same amount of money on a regular basis regardless of market conditions |
| diversification | holding a variety of investments for the purpose of reducing overall risk |
| portfolio | a collection of investments |
| financial market | any place where investments are bought and sold |
| bull market | a prolonged period of rising stock prices and general feeling of investor optimism |
| bear market | a period of steadily decreasing stock prices and investor pessimism |
