Successfully reported this slideshow.
You’ve unlocked unlimited downloads on SlideShare!
Savings and Investment By: Heath Barnacascel Principles of Business Period 3
Savings <ul><li>Saving means putting money aside for later </li></ul><ul><li>An example is that if you want to buy a car, you might put money that you get into a bank account to save to buy for a car </li></ul>
Compound Interest <ul><li>Compound interest is the concept of adding accumulated interest back to the principal, so that interest is earned on interest from that moment on </li></ul><ul><li>The act of declaring interest to be principal is called compounding </li></ul>
Certificate of Deposit <ul><li>A certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions </li></ul>
Money Market Account <ul><li>A money market deposit account (MMDA) is a deposit account that is considered a savings account for some purposes, but upon which checks can typically be written, subject to certain restrictions </li></ul>
Mutual Funds vs. Stock <ul><li>A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities </li></ul><ul><li>Stock is the capital raised by a corporation through the issue of shares entitling holders to an ownership interest </li></ul>
Common Alternative Investments <ul><li>An alternative investment is an investment product other than traditional investments such as stocks, bonds or cash </li></ul>
Liquidity <ul><li>The ability of an asset to be converted into cash quickly and without any price discount </li></ul><ul><li>An act of exchange of a less liquid asset with a more liquid asset is called liquidation </li></ul><ul><li>Liquidity also refers to a business' ability to meet its payment obligations, in terms of possessing sufficient liquid assets, and to such assets themselves </li></ul>
Common Stock vs. Preferred Stock <ul><li>Common stock is a form of corporation equity ownership represented in the securities. It is a stock whose dividends are based on market fluctuations </li></ul><ul><li>Preferred stock, also called preferred shares or preference shares, is typically a 'higher ranking' stock than voting shares, and its terms are negotiated between the corporation and the investor </li></ul>
NYSE <ul><li>New York Stock Exchange is an equity (stock) exchange located at 11 Wall Street in lower Manhattan, New York, USA). It is the largest stock exchange in the world by dollar value of its listed companies' securities </li></ul>
NASDAQ <ul><li>The NASDAQ (acronym of National Association of Securities Dealers Automated Quotations) is an American stock exchange. It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,800 companies, it has more trading volume per hour than any other stock exchange in the world </li></ul>