Dave Ramsey Ch 2 Vocab

aggressive Growth Stock Mutual Fund

a fund that provides maximum long-term capital growth from smaller companies

Annuity

sold by an insurance company to provide payments to the holder at certain intervals; tax free

Bond

a debt instrument where the issuer owes you money and pays interest payments with a promise to payback at a future date

CD

certificate of deposit; savings account with a slightly higher interest rate because of the longer savings commitment

commodity

food, metal, or physical substance that investors buy or sell

diversification

to spread around one's investment dollars to lower risks

dividend

distribution of a portion of a company's earnings

fixed annuity

a type of annuity that guarantees a certain rate of return

futures

financial instruments for future delivery on a commodity exchange

investments

an account in which one puts their money for long term growth

growth stock mutual fund

fund that buys stock in medium sized companies that have experienced some growth and are still expanding

large-cap fund

funds comprised of large, well established companies

liquidity

assets that can be converted quickly into cash without loss of value

mid-cap fund

mutual fund containing a group of medium sized companies that are growing

money market

mutual fund that maintains a stable share price and earns current income by investing in interest-bearing instruments with short-term maturities (90 or less)

portfolio

a list of your investments

rental real estate

buying real estate to rent out for an investment

risk

degree of uncertainty of return on an asset

international stock mutual fund

mutual fund that contains international or over seas companies

risk return ratio

relationship of substantial reward in comparison to the amount of risk taken

savings account

interest baring account that allows deposits and withdrawals

share

a piece of ownership in a company or mutual fund

single stocks

an individual stock share

small cap fund

mutual fund that invests in companies whose market value is less than $1Billion

speculative

purchasing risky investments that present the possibility of large profits but also pose a higher than average possibility of loss

track record

the past history of something

variable annuity

annuity that has a varying rate of return based on the mutual funds in which one has invested

aggressive Growth Stock Mutual Fund

a fund that provides maximum long-term capital growth from smaller companies

Annuity

sold by an insurance company to provide payments to the holder at certain intervals; tax free

Bond

a debt instrument where the issuer owes you money and pays interest payments with a promise to payback at a future date

CD

certificate of deposit; savings account with a slightly higher interest rate because of the longer savings commitment

commodity

food, metal, or physical substance that investors buy or sell

diversification

to spread around one's investment dollars to lower risks

dividend

distribution of a portion of a company's earnings

fixed annuity

a type of annuity that guarantees a certain rate of return

futures

financial instruments for future delivery on a commodity exchange

investments

an account in which one puts their money for long term growth

growth stock mutual fund

fund that buys stock in medium sized companies that have experienced some growth and are still expanding

large-cap fund

funds comprised of large, well established companies

liquidity

assets that can be converted quickly into cash without loss of value

mid-cap fund

mutual fund containing a group of medium sized companies that are growing

money market

mutual fund that maintains a stable share price and earns current income by investing in interest-bearing instruments with short-term maturities (90 or less)

portfolio

a list of your investments

rental real estate

buying real estate to rent out for an investment

risk

degree of uncertainty of return on an asset

international stock mutual fund

mutual fund that contains international or over seas companies

risk return ratio

relationship of substantial reward in comparison to the amount of risk taken

savings account

interest baring account that allows deposits and withdrawals

share

a piece of ownership in a company or mutual fund

single stocks

an individual stock share

small cap fund

mutual fund that invests in companies whose market value is less than $1Billion

speculative

purchasing risky investments that present the possibility of large profits but also pose a higher than average possibility of loss

track record

the past history of something

variable annuity

annuity that has a varying rate of return based on the mutual funds in which one has invested