Final Exam - Math for Finance

Definition: A deduction on income tax forms that is based on every single item you claim, such as educational expenses, medical expenses, travel expenses, and many more.

Definition: Describes the situation in which investors put their money into different types of investments to avoid being subject to the potential volatility of one single investment or stock.

Definition: When a company increases the number of outstanding shares by issuing new shares to existing investors.

Definition: Individuals who own shares of stocks in a company.

Definition: The total number of shares issued by a company and available to trade.

Definition: The money banks collect from homeowners for insurance & property taxes.

Definition: The upfront money applied to a large purchase that’s made using a loan

Definition: This is required by the bank, a type of insurance that covers the borrower in the event that they’re unable to repay the loan.

Definition: When a taxpayer lies about information on a tax return form in an attempt to avoid paying taxes.

Definition: Taxes you pay to the government and are based on the amount of money that you earn.