| A | B |
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| checkbook | A book containing blank checks to be used by the holder of a bank account. |
| checking account | A bank account in which the account holder can withdraw his or her available funds by writing a check or by using a debit card. |
| check register | A booklet used to track and balance checking accounts. |
| chief financial officer (CFO) | The corporate officer who is responsible for overseeing and managing the financial activities and policies of an entire company. |
| compound interest | Interest earned on both the principal amount and any interest already earned. |
| controller | A person who maintains and supervises accounting and financial reporting. |
| corporate bonds | Investment vehicle that typically pays higher interest than government bonds. |
| corporate bylaws | The laws and/or rules governing an organization |
| corporation | A legal entity that is separate from its owners. |
| credit | The act of buying something or borrowing money with the promise to repay the lender at a future date. |
| credit bureau | A credit-reporting agency that checks credit information and keeps files on people who apply for and use credit. |
| credit card | A plastic card with a magnetic strip or chip connected to an account that is used to buy goods or services. |
| credit counselor | A person who offers advice to consumers on repaying or eliminating debt. |
| creditor | A person or a business to whom debt is owed. |
| credit rating | An assessment of the creditworthiness of an individual. |
| credit report | A record of an individual’s or company’s bill-paying behaviors. |
| credit union | A cooperative nonprofit financial institution that is privately owned and controlled by its members. |
| debenture bonds | An unsecured |
| debit | In banking: money paid from an account that results in decreasing the account balance. |
| debtor | A person or a business that owes money or services to a creditor. |
| debt-to-income ratio | The amount of debt a person or a household has in relation to his or her income. |
| default | The failure of a borrower to repay the loan. |
| deficit | A financial shortage that occurs when liabilities exceed assets or when more cash is spent than is received. |
| devalue | To reduce the value of something. |
| direct deposit | A method of payment that is electronically deposited into an individual’s account. |
| discretionary expenses | Any expenses that are not considered essential to the household or business. |
| discretionary income | Income that is available after all of the essential financial commitments have been paid. |
| diversification | The process of spreading investments across a wide range of securities to reduce risk. |
| earned income | Any money that is generated by working. |
| economic risk | The investment risk associated with the overall health of the economy. |
| electronic banking | A service provided by financial institutions that allows customers to manage banking transactions via computer. |
| entrepreneur | An individual who organizes and starts a business and assumes all financial risk for it. |
| entry level | a starting-level position at a business that requires a minimum amount of experience. |
| equity financing | A method of raising capital through the sale of stock. |
| estate planner | A person who works with an estate owner to create a plan that meets the owner’s goals after death |
| ethical dilemma | A situation in which a person is faced with two convincing yet conflicting alternatives for the solution to a difficult problem. |
| ethics | A set of values relating to human conduct concerning the rightness and wrongness of certain actions. |
| ethics in business | The process of applying a set of values concerning right and wrong to a business context. |
| exchange rates | The rate at which one currency is converted to another. |
| export | A good or service produced in one country and transported to another country to be sold. |
| Federal Deposit Insurance Corporation (FDIC) | An agency of the United States that promotes public confidence in the US financial. |
| Federal Reserve | The central bank of the United States. |
| Federal Reserve Act | A law passed by Congress in 1913 |
| FICO (Fair Isaac Corporation) | created the FICO score - the most common credit-scoring model used by lenders. |
| finance | The science of the management of money and other assets |
| finance charge | A fee representing the cost of credit. |
| finance manager | An individual who manages money and assets for an individual or for an organization. |
| financial advisor | A professional who provides financial planning and advice on financial matters. |
| financial analyst | An employee of a bank |
| financial health | A description of a person’s or an organization’s finances. |
| financial holding company | A financial institution that may offer a broad range of banking-related services. |
| financial intermediary | An institution that provides as a service for those who have extra money to save or lend and channels it to those who wish to invest or borrow. |
| financial literacy | The ability of individuals to make appropriate decisions in managing their personal finances. |
| financial market | A system that allows people to easily buy and sell financial securities |
| financial planner | investment professional who finds ways to increase the client’s net worth and help the client accomplish all of his or her financial objectives. |
| financial services industry | Financial institutions that help clients manage money |
| fixed expenses | Expenses that remain the same regardless of the circumstances. |
| fixed rate | An interest rate that doesn’t change. |
| future | A contract that requires the buyer to purchase or sell a certain instrument at a specific time and price in the future. |
| future value | What an amount invested today at a particular interest rate will be worth in the future. |
| Glass-Steagall Act | A law which prohibits commercial banks from engaging in investment banking services. |
| global investment risk | The risk associated with investing internationally. |
| globalization | The worldwide integration of markets and societies. |
| hedge fund | A private investment fund that is lightly regulated and uses leverage to invest in many markets. |
| import | A good or service brought in from a foreign country. |
| income | Money that is received from any source |
| inflation | The declining value of money due to rising prices. |
| insurance agent | A person who helps clients choose from a wide range of insurance policies that can best protect them. |
| insurance company | A financial institution that protects persons against the risk of financial loss. |
| interest | A fee paid for the use of money over time. |
| interest rate | The cost for borrowing money - expressed as a percentage. |
| interest rate risk | The risk that interest rates will change. |
| 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. |
| 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 |
| investment banker | Someone who acts as an underwriter for corporations issuing securities. |
| 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 enforced for the general good. |
| lender | A person or 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 |
| 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. |
| market risk | The risk that the value of an investment will decrease due to changes in the market. |
| 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. |
| money market account | A type of savings account that offers higher interest rates |
| morals | Principles concerned with the goodness or badness of human action and character. |
| mortgage | A loan used to purchase a home with the property used as security. |
| municipal bond | A bond issued by the state or local government. |
| 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. 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. |
| net worth or wealth | The value of a person or entity’s assets less the amount of their liabilities. |
| New York Stock Exchange (NYSE) | The oldest and largest securities market in the United States. It is located on Wall Street in New York. |
| NYSE MKT (formally known as AMEX) | An American stock exchange whose core business revolves around small to mid-size companies. Has the most liberal policies concerning company listings. |
| option | The right - but not the obligation - to buy or sell a specific item (commodity |
| 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 NYSE crashed and caused nationwide panic. It led to the creation of the Federal Reserve System. |
| 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. |
| 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 |
| present value | The value of a future cash stream discounted at the appropriate market interest rate. |
| private equity | Securities that are not listed on any stock exchange. |
| 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. |
| savings account | An account that offers interest on deposits with some restrictions. |
| secured loan | A loan that is backed by collateral such as cars houses or other assets. |
| securities | Financial instruments such as stocks bonds and mutual funds that are traded on a stock exchange. |
| Securities Act of 1933 | The first major law regarding the sale of securities. It required that companies register their securities sold to the public with the SEC and that investment bankers must provide full and accurate information related to new securities issues to potential investors. |
| Securities and Exchange Commission (SEC) | A federal agency that is responsible for regulating the securities industry and enforcing federal securities laws. |
| securities broker | A person who buys and sells securities on behalf of others. |
| simple interest | The amount of interest based on a principal amount and not on earned interest. |
| SMART goal | Goals that are specific measurable attainable realistic and time-bound. |
| soft skills | Knowledge and abilities that are not specifically job-related but aid in the ability to perform the job well |
| sole proprietorship | Business owned by a single person. |
| stock | A share of ownership in a company. |
| student loan | A type of loan that is used by a student to pay for educational costs. |
| tariff | A tax imposed on imports or exports. |
| tax preparer | A person who prepares tax returns for individuals or businesses. |
| time value of money | Money’s potential to grow in value over time. |
| Treasury bill (T-bill) | Short-term US government security with a maturity date of one year or less. |
| Treasury bond | A debt security of the US Treasury that is issued with a maturity length of 10 years or more and normally sold in $1 |
| unlimited liability | The liability of the owner of a business for all of the business’s financial obligations whereby an owner’s personal assets can be taken. |
| unsecured loan | A loan that is not backed by collateral but by the promise of the borrower to repay it. |
| values | A person’s or a group’s deeply held beliefs. |
| variable expense | An expense that changes from period to period such as food or gasoline costs. |
| variable rate | An interest rate that goes up or down depending on the market rate. |
| venture capital | Financing for new business ventures and/or start-up companies with a lot of growth potential. |
| wealth | A great quantity or store of money valuable possessions property or other riches. |
| withdrawal | The act of taking money out of an account. |
