Term
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Definition
| recording, classifying, summarizing, and interpreting of financial events and transactions to provide information |
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Term
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Definition
| accounting used to provide information and analyses to managers inside the organization to assist them in decision making |
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Term
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Definition
| method used to record and summarize accounting data into reports |
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Term
| certified management accountant (CMA) |
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Definition
| professional accountant certified by the Institue of Certified Management Accountants |
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Term
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Definition
| accounting information and analyses prepared for people outside the organization |
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Term
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Definition
| a yearly statement of the financial condition, progress, and expectations of an organization |
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Term
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Definition
| an accountant who works for a single firm. government agency, or nonprofit organization |
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Term
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Definition
| an accountant who provides accounting servies to individuals or businesses on a fee basis |
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Term
| certified public accountant |
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Definition
| an accountant who passes a series of examinations established by the American Institue of Certified Public Accountants |
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Term
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Definition
| the job of reviewing and evaluating the information used to prepare a company's financial statements |
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Term
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Definition
| an evaluation and unbiased opinion about the accuracy of a company's financial statements |
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Term
| certified internal auditor |
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Definition
| an accountant who has a bachelor's degree and two years of experience in internal auditing |
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Term
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Definition
| an accountant trained in tax law and responsible for preparing tax returns or developing tax strategies |
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Term
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Definition
| six-step procedure that results in the preparation and analysis of the major financial statements |
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Term
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Definition
| the recording of business transactions |
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Term
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Definition
| record book or computer program where accounting data are first entered |
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Term
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Definition
| practice of writing every business transaction in two places |
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Term
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Definition
| specialized accounting book or computer program in which inforamtion from accounting journals is accumulated into specific categories |
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Term
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Definition
| summary of all the financial data in the account ledgers that ensures the figures are correct and balanced |
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Term
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Definition
| a summary of all the transactions that have occurred over a particular period |
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Term
| fundamental accounting equation |
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Definition
| assets = liabilities + owner's equity |
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Term
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Definition
| financial statement that reports a firm's financial conditions at a specific time and is composed of three major ccounts: assets, liabilities, and owners' equity, |
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Term
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Definition
| economic resources owned by a firm |
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Term
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Definition
| the ease with which an asset can be converted into cash |
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Term
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Definition
| items that can or will be converted into cash within one year |
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Term
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Definition
| assets that are relatively permanent, such as land |
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Term
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Definition
| long-term assets that have no real physical form but have value |
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Term
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Definition
| what the business owes to others |
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Term
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Definition
| current liabilities are bills the company owes to others for merchandise or services purchased on credit, but not yet payed for |
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Term
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Definition
| short-term or long-term liabilites that a business promises to repay by a certain date |
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Term
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Definition
| long-term liabilities that represent money lent to the firm that must be paid back |
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Term
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Definition
| amount of the business that belongs to the owners minus any liabilities owed by the business |
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Term
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Definition
| accumulated earnings from a firm's profitable operations that were reinvested in the business and not paid out to stock holders in dividends |
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Term
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Definition
| financial statement that shows a firm's profit after costs, expenses, and taxes |
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Term
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Definition
| revenue left over after all costs and expenses, including taxes, are paid. |
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Term
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Definition
| a measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale |
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Term
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Definition
| how much a firm earned by buying and selling merchandise |
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Term
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Definition
| costs involved in operating a business, such as rent, utilities, and salaries |
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Term
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Definition
| systematic write-off of the cost of a tangible asset over its estimated useful life |
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Term
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Definition
| financial statement that reports cash receipts and disbursements related to a firms three major activities: operations, investments, and financing |
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Term
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Definition
| difference between cash coming in and cash going out of a business |
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Term
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Definition
| assessment of a firm's financial condition using calculations and interpretations of financial rations developed from the firm's financial statements |
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Term
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Definition
| function in a business that acquires funds for the firm and manages those funds within the firm |
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Term
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Definition
| job of managing a firm's resources so it can meet its goals and objectives |
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Term
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Definition
| managers who examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm |
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Term
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Definition
| forecast that predicts revenues, costs, and expenses for a period of one year or less |
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Term
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Definition
| forecast that predicts the cash inflows and outflows in future periods, usually months or quarters |
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Term
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Definition
| forecast that predicts revenues, costs, and expenses for a period longer than 1 year, sometimes as far as 5 or 10 years in the future |
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Term
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Definition
| financial plan that sets forth management's expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm |
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Term
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Definition
| a budget that highlights a firm's spending plans for major asset purchases that often require large sums of money |
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Term
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Definition
| a budget that estimates cash inflows and outflows during a particular period like a month or a quarter |
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Term
| operating (or master) budget |
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Definition
| budget that ties together the firm's other budget and summarizes its proposed financial activities |
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Term
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Definition
| a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget |
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Term
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Definition
| major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights |
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Term
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Definition
| funds raised though various forms of borrowing that must be repaid |
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Term
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Definition
| money raised from within the firm, from operations, or through the sale of ownership in the firm |
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Term
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Definition
| funds needed for a year or less |
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Term
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Definition
| funds needed for more than a year |
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Term
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Definition
| practice of buying goods and services now and paying for them later |
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Term
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Definition
| a written contract with a promise to pay for a supplier a specific sum of money at a definite time |
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Term
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Definition
| a loan backed by collateral, something valuable such as property |
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Term
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Definition
| a loan that doesn't require any collateral |
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Term
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Definition
| a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available |
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Term
| revolving credit agreement |
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Definition
| a line of credit that's guaranteed but usually comes witha fee |
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Term
| commercial finance companies |
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Definition
| organization that make short-term loans to borrowers who offer tangible assets as collateral |
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Term
| commercial finance companies |
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Definition
| organization that make short-term loans to borrowers who offer tangible assets as collateral |
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Term
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Definition
| process of selling accounts receivable for cash |
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Term
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Definition
| unsecured promissory notes of $100,000 and up that mature in 270 days or less |
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Term
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Definition
| a promissory note that requires the borrower to repay the loan in specified installments |
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Term
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Definition
| the principle that the greater the risk a lender takes, the higher the interest rate |
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Term
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Definition
| terms of agreement in a bond issue |
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Term
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Definition
| bond issued with some form of collateral |
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Term
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Definition
| a bond backed by only by the reputation of the issuer; also called a debenture bond |
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Term
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Definition
| money that is invested in new or emerging companies |
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Term
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Definition
| raising needed funds through borrowing to increase a firm's rate of return |
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Term
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Definition
| the rate of return a company must earn in order to meet the demands of its lenders |
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Term
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Definition
| raising needed funds through borrowing to increase a firm's rate of return |
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Term
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Definition
| the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders |
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Term
| initial public offering (IPO) |
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Definition
| first public offering of a corporation's stock |
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Term
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Definition
| specialists who assist in the issue and sale of new securities |
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Term
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Definition
| large organizations that invest their own funds or the funds of others |
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Term
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Definition
| an organization whose members can buy and sell securities |
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Term
| over-the-counter (OTC) market |
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Definition
| exchange that provides a means to trade stocks not listed on the national exchanges |
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Term
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Definition
| a nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
| federal agency responsible for regulating the various stock exchanges |
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Term
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Definition
| condensed version of economic and financial information that a company must file with the SEC before issuing stock |
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Term
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Definition
| shares of ownership in a company |
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Term
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Definition
| evidence of stock ownership |
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Term
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Definition
| part of a firm's profits that the firm may distribute to stockholders as either cash payments or additional shares of stock |
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Term
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Definition
| most basic form of ownership in a firm, it confers voting rights and the right to share in profit through dividends |
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Term
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Definition
| stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold |
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Term
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Definition
| corporate certificate indicating that a person has lent money to a firm |
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Term
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Definition
| exact date the issuer of a bond must pay the principal to the bondholder |
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Term
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Definition
| payment the issuer of the bond makes to the bondholders for use of the borrowed money |
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Term
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Definition
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Term
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Definition
| a reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond |
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Term
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Definition
| a registered representative who works as a market intermediary to buy and sell securities for clients |
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Term
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Definition
| buying several different investment alternatives to spread the risk of investing |
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Term
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Definition
| positive difference between the purchase price of a stock and its sale price |
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Term
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Definition
| an action by a company that gives stockholders two or more shares of stock for each one they own |
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Term
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Definition
| purchasing stocks by borrowing some of the purchase cost from the brokerage firm |
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Term
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Definition
| high-risk, high-interest bonds |
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Term
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Definition
| an organization that buys stocks and bonds and then sells shares in those securities to the public |
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Term
| exchange-traded funds (ETFs) |
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Definition
| collections of stocks and bonds that are traded on exchanges but are traded more like individual stocks than like mutual funds |
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Term
| Dow Jones Industrial Average |
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Definition
| average cost of 30 selected industrial stocks, used to give an indication of the direction of the stock market |
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Term
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Definition
| giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid losses |
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Term
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Definition
| anything that people generally accept as payment for goods and services |
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Term
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Definition
| direct trading of goods or services for other goods or services |
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Term
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Definition
| amount of money the Federal Reserve Bank makes available for people to buy goods and services |
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Term
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Definition
| money that can be accessed quickly and easily |
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Term
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Definition
| Money included in M-1 plus money that may take a little more time to obtain |
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Term
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Definition
| M-2 plus big deposits like institutional money market funds |
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Term
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Definition
| a percentage of commercial banks' checking and savings accounts that must be physically kept in the bank |
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Term
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Definition
| investor's risk of loss arising from a borrower who does not make payments as promised |
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Term
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Definition
| the risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease |
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Term
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Definition
| risk arising from execution of a company's business functions |
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Term
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Definition
| buying and selling of US government bonds by the Fd with the goal of regulating the money supply |
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Term
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Definition
| the interest rate that the Fed charges for loans to member banks |
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Term
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Definition
| a profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans |
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Term
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Definition
| technical name for a checking account |
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Term
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Definition
| technical name for a savings account, the bank can require prior notice before withdrawals can be made |
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Term
| certificate of deposit (CD) |
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Definition
| a time-deposit account that earns interest to be delivered at the end of the certificate's maturity date |
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Term
| savings and loan association |
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Definition
| financial institution that accepts both savings and checking deposits and provides home mortgage loans |
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Term
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Definition
| nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members |
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Term
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Definition
| financial organization that accept no deposits but offer ,any of the servies provided by regular banks (pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses |
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Term
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Definition
| amounts of money put aside by corporations, non profit organizations, or unions to cover part of the financial needs of members when they retire |
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Term
| Federal Deposit Insurance Corporation (FDIC) |
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Definition
| an independent agency of the US government that insures bank deposits |
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Term
| Saving Association Insurance Fund (SAIF) |
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Definition
| part of the FDIC that insures holders of accounts in savings and loan associations |
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Term
| electronic funds transfer (EFT) system |
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Definition
| computerized system that electronically performs financial transaction such as making purchases, paying bills, and receiving paychecks |
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Term
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Definition
| an electronic funds transfer tool that serves the same function as checks |
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Term
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Definition
| an electronic funds transfer tool that is a combination credit card, debit card, phone card, driver's license card, and more |
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Term
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Definition
| promise by the bank to pay the seller a given amount if certain conditions are met |
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Term
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Definition
| a promise that the bank will pay some specified amount at a particular time |
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Term
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Definition
| bank primarily responsible for financing economic development; also known as the International Bank for Reconstruction and Development |
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Term
| International Monetary Fund (IMF) |
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Definition
| organization that assists the smooth flow of money among nations |
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Term
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Definition
| chance of loss, the degree of probability of loss, and the amount of possible loss |
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Term
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Definition
| a chance of either profit or loss |
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Term
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Definition
| threat of loss with no chance for profit |
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Term
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Definition
| practice of setting aside money to cover routine claims and buying only "catastrophe" policies to cover big losses |
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Term
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Definition
| a risk that no company will cover |
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Term
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Definition
| a risk that the typical company will cover |
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Term
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Definition
| possibility of the policyholder to suffer a loss |
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Term
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Definition
| written contract between the insured and an insurance company that promises to pay for all or part of a loss |
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Term
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Definition
| fee charged by an insurance company for an insurance policy |
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Term
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Definition
| statement of loss that the insured sends to the insurance company |
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Term
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Definition
| principle that if a large number of people are exposed to the same risk, a predictable number of losses will occur during a given period of time |
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Term
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Definition
| rule saying that an insured person or organisation cannot collect more than the actual loss from an insurable risk |
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Term
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Definition
| type of insurance company owned by stockholders |
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Term
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Definition
| type of insurance company owned by its policy holders |
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Term
| health maintenance organizations (HMOs) |
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Definition
| health care organizations that require members to choose from a restricted list of doctors |
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Term
| preferred provider organizations (PPOs) |
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Definition
| health care organizations similar to HMOs except that they allow members to choose their own physicians (for a fee) |
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Term
| health savings accounts (HSAs) |
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Definition
| tax-deferred savings accounts linked to low-cost, high-deductible health insurance policies |
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