Emergency Fund

– savings account that you can access quickly to pay for unexpected expenses or emergency’s

Speculative investment

– considered a high-risk investment might earn a large profit in a short time

Dividends

– these are distributions of money stock or other property that a corporate pays stock owner

Retained earnings

– profit that a company reinvest usually for an expansion or conduct research and development

Investment liquidity

– ability to buy of sale a invest quickly without reducing its value

Equity capital

- this is the money that a business gets from its owners in order to operate

Common stock

– this is the unit of ownership of a company that intitles the owner to voting privileges

Preferred stock

– this gives the owner an advantage of receiving dividend before the common stock holders

Cooperate bond

– this is a cooperate written pledge to repay a specific amount of money along with interest.

Government Bond

– written pledge from the government or city to repay a amount of money with interest

Mutual fund

– when investors pull their money to buy stocks and bond selected by professional managers who work for a investment company

Diversification

- spreading assets across several different type of investments to lose risk

Financial planner

– specialist that are trained to give you financial advice

Tax exempt income

– income that is not taxed

Taxed differed income

– this is income that is taxed at a later date

Capital gain

– profit from the sale of assets or real estate

Capital lost

– this is a sale of an investment for less than its purchased price

Prospectus

– document that discloses information about a company’s earnings