Resources Words...Words...Words

There's no question that bankers, brokers and financial consultants have a language of their own -- how well do you speak it and understand it? Here's an easy way to find out. Just select the word that best matches the definition.

1. IRS-approved delay of taxes until a later date.
 


2. A measurement of the likelihood of losing your money or receiving less in return on it than anticipated.
 


3. The ease with which an investment may be converted to cash.
 


4. The investment of equal amounts at regular intervals, commonly into stocks, usually resulting in an overall lower share/unit cost over time.
 


5. Investing in a variety of asset classes (for example, stocks, bonds or money markets) in order to reduce risk and increase return.
 


6. A loan to the government or a corporation. (These securities pay a specified interest rate over a given period of time after which the owner receives back his or her initial investment.)
 


7. A periodic process by which interest is applied not only to one's savings or investment but also to previous interest or return amounts.
 


8. An ownership share in a corporation.
 


9. An economic condition causing the consumer to pay more in the future for goods or services than he or she would pay today.
 


10. Dividends and gains used to purchase additional shares rather than being distributed in cash.
 


11. The amount earned, or lost, on the original worth of the initial investment.
 


12. Investment among a variety of asset classes, such as stocks, bonds and money market instruments.
 


13. An increase in an investment's value.
 


14. Promissory notes sold to the public by large corporations to meet their short-term needs for funds.
 


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