FINANCIAL CONCEPTS PART 4

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.

• BANK ACCOUNT

• MUTUAL FUNDS

• INVESTMENTS

• RETIREMENT FUNDS

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

• GUARANTOR

• INVESTORS

• BANKING

• LOAN

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.

• FUNDING

• INVESTOR

• LINE OF CREDIT

• IRS

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

• ONE TIME PAYMENT

• INTEREST

• STATE TAXES

• MONTHLY INSTALLMENT

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

• BUSINESS OWNER

• POLICY HOLDER

• PROTECTING MY BUSINESS

• CLAIM

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.)

• LEGAL DOCUMENTS

• JUDGEMENT

• INSURANCE

• PREMIUM

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

• ACCIDENT

• JUDGEMENT

• INSTALLMENT PAYMENT

• INSURANCE CLAIM

A payment you owe every month.

• OBLIGATION

• BILLS

• STATE TAXES

• BONDS

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

• PAYMENTS

• INSTALLMENTS

• ONLINE LOAN

• DEBT

"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.

• FUNDING

• LIQUIDITY RATIO

• GUARANTOR

• BANK LOAN