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ALLOCATION
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BONDS
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Financial Literacy

Business Education Vocabulary

TermDefinition
ALLOCATION A SUM OF MONEY PUT ASIDE FOR A SPECIFIED PURPOSE
BONDS AN AGREEMENT TO LEND MONEY TO A BORROWER FOR A PERIOD OF TIME FOR WHICH YOU WILL BE PAID INTEREST.
CERTIFICATE OF DEPOSIT A FINANCIAL ACCOUNT THAT HOLDS YOUR MONEY ON DEPOSIT FOR A SPECIFIC PERIOD OF TIME.
HIGH-RISK INVESTMENT AN INVESTMENT IN WHICH YOU STAND A GREATER CHANCE OF LOSING MONEY.
INTEREST A FEE CHARGED FOR BORROWING MONEY.
MATURITY A BOND INVESTOR CAN RECEIVE THEIR INTIAL INVESTMENT ON THIS DATE
MONEY MARKET DEPOSIT ACCOUNT OFFERED BY A BANK OR CREDIT UNION, THIS ACCOUNT WORKS LIKE A CHECKING ACCOUNT EXCEPT THE NUMBER OF TRANSACTIONS PER MONTH IS LIMITED. IT PAYS HIGHER INTERST RATE THAN A SAVINGS ACCOUNT.
STOCK SHARES REPRESENTING OWNERSHIP OF PART OF A COMPANY.
VENTURE A BUSINESS UNDERTAKING INVOLVING RISK IN THE HOPE OF PROFIT
LOW-RISK INVESTMENT AN INVESTMENT IN WHICH YOU STAND A LESSER CHANCE OF LOSING MONEY
BUDGET A FINANCIAL PLAN TO BALANCE SPENDING AND SAVINGS
REINVEST TO TAKE MONEY YOU HAVE EARNED FROM YOUR BUSINESS, AND PUT IT BACK INTO YOUR BUSINESS TO MAKE IT.
COMPOUND INTEREST INTEREST THAT IS PAID ON INTEREST THAT YOU HAVE ALREADY EARNED.
SIMPLE INTEREST PRINCIPAL * INTEREST RATE * TIME
Created by: shassig
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