Personal Finance Vocabulary

4. stock, A type of stock that represents ownership in a company and usually provides voting rights
5. fund, An investment that pools money to buy a diversified portfolio
7. The possibility of financial loss or uncertainty
9. stock, Stock that provides fixed dividends and priority over common stock
12. Retirement Fund (IRA), A retirement savings account with tax advantages
13. bonds, Bonds issued by state or local governments to fund public projects
18. The amount paid out of pocket before insurance coverage begins
19. rate, The percentage charged for borrowing money or earned on savings
21. A professional who buys and sells securities for clients
23. Individuals or institutions that lend money or extend credit
24. taxes, Taxes withheld from wages to fund government programs
26. Income or property that is not subject to taxation
27. The date when a loan or bond must be repaid in full
28. A portion of a company’s profits paid to shareholders

1. deductions, Amounts taken from income after taxes are calculated
2. Failure to repay a loan according to agreed terms
3. diversification, The practice of spreading investments to reduce risk
6. Union, A member-owned financial institution that offers banking services
8. Regular payments made to maintain insurance coverage
10. institution, An organization that provides financial services such as banking or investing
11. loan, A loan that does not require collateral
14. Deposit Insurance Corporation (FDIC), A U.S. government agency that insures bank deposits
15. Deposit Account (DDA), A bank account that allows funds to be withdrawn at any time
16. A financial instrument representing ownership in a company
17. Money set aside for future use
20. deductions, Amounts taken from income before taxes are calculated
22. An asset pledged to secure a loan that can be taken if the borrower fails to repay
25. loan, A loan backed by collateral