Chapter 11 Vocab

Market in which money is loaned for periods of less than 1 year

Stock with a high degree of risk such as penny stocks or emerging market stocks

Set up to collect income and disburse payments for those eligible for retirement or disability

Formal long term contract that requires repayment of borrowed $ & interest on the borrowed $

Someone who inherits the ownership of the financial asset if the purchaser dies

Dollars that become available when people abstain from spending

Stock that gives a vote in company, if company goes under the investor loses investment

A market where only the original issuer can sell or repurchase a financial asset

Payment intended to provide income security

Assets that cannot be quickly converted to cash without risking significant loss of value

Assets that can easily be converted to cash

Market in which money is loaned for more than 1 year

Debt or financial obligation that must be paid back

Absence of spending

Bonds issued by state and local governments

Person who buys and sells equities for clients

Exceptionally risky bonds

Where existing financial assets can be resold to new owners

Company that makes direct loans to consumers

Monthly payment made to an insurance company

Tax deferred investment and savings plan that acts as a personal pension fund for employees

Stock that does not give a vote in company, investors gets $ back if company goes under

Collects a premium to insure financial securities for beneficiaries

A company that sells stock in itself to individual investors

Document showing that an investor has made an interest-bearing loan to a bank

Low-denomination, nontransferable bonds issued by the U.S. government

Institutions that lend the funds that savers provide

Nonphysical asset with monetary value

Network of savers, investors, and financial institutions that work together to transfer savings

Shares of common stocks that represent ownership of corporations

Practice of holding a large number of different stocks

Long term tax sheltered time deposits set up as part of an individual retirement plan