FINANCIAL CONCEPTS PART 4

Front

An investment security that includes many different stocks purchased and held together. These funds are less risky because the funds are from more than one stock.

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MUTUAL FUNDS

Front

A person or company with sufficient liquidity who “guarantees” to repay loan if a company cannot.

Back

GUARANTOR

Front

A loan that provides the borrower a maximum amount of money or “credit” he/she can borrow. The borrower can then access or use the credit for only as much money as they need at any particular time.

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LINE OF CREDIT

Front

Debt you owe someone that is paid in monthly payments. (Ex. car payment mortgage, credit card payments)

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MONTHLY INSTALLMENT

Front

The individual or business that purchases an insurance policy for various types of protection. (Ex. fire insurance, life insurance)

Back

POLICY HOLDER

Front

A legal decision requiring a person or company to pay another person or company. (Ex. suing a company for failure to repay the loan I gave them plus lawyer fees.)

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JUDGEMENT

Front

The amount and policy holder receives from the insurance company to reimburse the policyholder for a covered loss. (Ex. Fire damage, auto accident)

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INSURANCE CLAIM

Front

A payment you owe every month.

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OBLIGATION

Front

Debt obtained from a number of “online” lending companies.

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ONLINE LOAN

Front

"Ratios" a lending company calculates about an individual or a company to determine how likely they are to have the liquidity to repay debt payments that are required in a loan.

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LIQUIDITY RATIO