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Financial Literacy in the News

Glossary of Terms

When you buy a house, you will need to insure it. First, because unless you have an interest-only mortgage, you will have put in a lot of your own money as a...
This is a stock that typically trades for under $5 and often for less than a dollar. Companies that issue these stocks tend to be smaller and less well known,...
This is a stockbroker who usually charges customers higher fees and commissions, but justifies the higher fees by providing "full service." This usually means advice and research on which...
A budget is an estimate of future income and expenses. All companies prepare budgets that describe in purely financial terms their expectations for a coming period of time. Annual budgets looking ahead for the next year are always...
Capital can be defined basically as money, but is sometimes used to include any kind of asset. The word "capitalism" comes directly from it. Companies can "raise capital" by issuing shares or by selling bonds. The "cost of capital"...
When you have a bank account and start writing checks, you'll soon find that you are writing checks every month to the same half dozen or so organizations (for example, your landlord, the gas...
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