1-3 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Capital: The money or other financial assets a business uses to cover various costs, including start-up, operating, or growth.
Capital assets: An asset that creates other assets and growth. For example, a bottle factory is a capital asset that creates bottles.
Capital gains: Any gains realized on an investment where you sold it for more than you paid.
Cash equivalent: A short-term low-risk investment, such as a savings or money market account. Also known as cash investment.
Cash flow: The money you have coming in and going out.
Cash investment: A short-term low-risk investment, such as a savings or money market account. Also known as cash equivalent.
Cash surrender value: The amount in the cash value account of a permanent life insurance policy. This is the amount received by policy holder if the policy is canceled or surrendered.
Cash value: The tax-deferred account that accumulates from a portion of the premiums paid and against which you can borrow on a permanent life insurance policy.
Certificate of deposit (CD): A savings certificate that entitles the bearer to receive interest on the principal and accumulating earnings for a certain period of time and at a fixed interest rate.
Checking account: A type of bank account that allows you to write checks or make payments to specified payees or by using your check or debit card to make purchases.
Claim: Paperwork filed with an insurance company in order to be reimbursed for a loss.
Closing: The concluding step in a real estate transaction where various legal documents are signed, including loan agreements. Also known as a settlement.
Closing statement: A document received in a closing that lists final costs associated with a real estate transaction. Also known as a settlement statement.
Collateral: Any liquefiable assets used to secure a loan or other credit, which can be seized if a loan is defaulted on.
College fund: An investment used for college expenses, such as a 529 Plan or Coverdell.
Commission: The percentage of the sales price that most sales people receive as compensation for selling something.
Commodities: A commodity can be food, metal, crude oil, or other fixed physical substances that investors can buy and sell. This is usually done through futures contracts.
Compensation: A wage or salary and other benefits that an employee receives.
Compound interest: This is interest paid on interest earned. Interest is credited in daily, monthly, quarterly, annually, or semi-annually increments on both principal and already credited interest.
Convertible term: A type of term life insurance that has the option of later being converted into a permanent policy without a new health exam.
Co-signer: A person who agrees to be held responsible should the primary borrower default on their loan.
Credit bureau or credit reporting agency: Companies that collect credit information on individuals and provides it to lenders in order to determine if a person is a good fit for a loan product. These companies include: Equifax, Experian, and TransUnion.
Credit history: A record of how you have used credit in the past.
Credit limit: The maximum amount you can use in a revolving credit account.
Credit line: A revolving credit agreement where you are allowed to write checks or make withdrawals up to your credit limit.
Credit report: A document provided by a credit bureau that summarizes how you have used credit for current and canceled accounts, and lists your current credit arrangements along with other public record information, such as employers, addresses, disputes, etc.
Credit score: A number that ranges from 300 to about 900 and represents your payment history, current debt level, credit history length, and new debt. The number is intended to be a predictor of your credit worthiness where the higher the number the better your chances of being approved for a new line of credit with more favorable terms.