She's likable, but I won't vote for her because of her leanings in economics.†

economics = the study of how limited resources are allocated in an attempt to satisfy unlimited wants

Typical Usage

She worked hard to raise capital to start their new company.

capital = cash (or more generally, material wealth — especially assets available for use in the production of further assets)

Typical Usage

We are the proud owners of a new home and a $100,000 mortgage.

mortgage = a real estate loan agreement that promises to turn the real estate over to the lender if the loan isn't paid

Typical Usage

Children acquire language at an amazing rate.

acquire = obtain (come into the possession of something)

Typical Usage

She suffers from more than the usual pre-test anxiety.

anxiety = nervousness or worry

Typical Usage

philosophers have speculated on the question of God for thousands of years

speculated = thought and guessed without certainty

Typical Usage

I'm too old to invest in speculative business enterprises.

speculative = uncertain — especially in reference to a profit-making investment or venture

Typical Usage

We have sufficient supplies.

sufficient = adequate (enough — often without being more than is needed)

Typical Usage

We anticipate a 12% ROI.†

ROI = finance:  a measure of the value of an investment generally expressed as an annual percentage of the money invested; calculated as the amount of money earned divided by the amount of money invested

Typical Usage

She feels that helping him is her obligation.

obligation = duty

Typical Usage

allocate time and resources†

allocate = distribute according to a plan; or set apart for a special purpose

Typical Usage

The annuity does not increase with inflation.†

annuity = income received in regular periodic payments — especially from a fixed capital investment

Typical Usage

The report shows inflation-adjusted dollars.†

inflation = a general and progressive increase in prices

Typical Usage

These maps are drawn with north to the top unless otherwise indicated.

indicated = pointed out (shown)

Typical Usage

There is much interesting study on the predictive value of the ratio of the length of the index finger to the ring finger within a given gender and race.

ratio = relative lengths

Typical Usage

The net worth on her financial statement does not reflect her youthful promise.†

net worth = financial worth as calculated by subtracting liabilities from assets

Typical Usage

They bought the house without a 3% down payment, but now have negative equity.†

equity = the value of an asset after all debts upon it are paid

Typical Usage

The state has approximately as many Republicans as Democrats.

approximately = about (but not exactly)

Typical Usage

She bought Google stock before it doubled in value.

stock = shares of ownership of different corporations

Typical Usage

Congress is voting on whether to increase the rate of the capital gains tax.†

capital gains = the amount by which the selling price of an asset exceeds the purchase price

Typical Usage

The company matches her contributions to her IRA.†

IRA = Individual Retirement Account (a retirement savings account into which the saver can invest money with tax advantages)

(editor's note:  IRA is also used as an abbreviation for Irish Republican Army — a name used by various historical organizations that fought for Irish independence from Great Britain.)

Typical Usage

She has been typecast as the female who beats up males, but she's eager to diversify her roles.

diversify = make more varied

Typical Usage

Students should contact our office to inquire about scholarship opportunities.

inquire = ask about or look into

Typical Usage

She scrutinized her reflection in the mirror.

scrutinized = looked very carefully at

Typical Usage

Her insurance includes comprehensive coverage.

comprehensive = including everything

Typical Usage

We are hoping for peace and prosperity.†

prosperity = the state of doing well — especially economically

Typical Usage

We won't need the money until August, so we put the money in a 3-month certificate of deposit to earn more interest.†

certificate of deposit = money deposited with a financial institution for a stated time for a fixed rate of interest

Typical Usage

The counseling is to break the cycle of habitual drug abuse.

habitual = done regularly without repeated thought

Typical Usage

We try to keep the equivalent of six months of expenses in a money market fund.†

money market fund = a mutual fund designed to support frequent deposits and withdrawals and that invests in very short-term instruments such as U.S. Treasury bills, corporate commercial paper and certificates of deposit

Typical Usage

The power of compound interest over long periods of time is not intuitive.†

compound interest = interest calculated on both the initial amount and on previous interest earned;

Example:  $100 invested at 10% interest would earn $10 per year, but if interest is compounded annually, it would earn $11 the second year

Typical Usage

We're saving money for a down payment on a home.

down payment = a partial payment made at the time of purchase

Typical Usage

The Dow is up for the year, but dropped over a 100 points today.†

The Dow = most commonly followed index of the U.S. stock market comprised of 30 stocks that are thought to be a barometer of U.S. stocks in general

Typical Usage

The company is being dropped from the S&P 500.†

S&P 500 = an index of 500 U.S. stocks that is one of the top 3 indexes watched as a benchmark of U.S. stock performance

Typical Usage

I invest in a low-cost, diversified mutual fund.†

mutual fund = fund enabling investors to pool their money and place it under professional investment management

Typical Usage

A large index fund tends to have lower costs.†

index fund = a mutual fund that matches its portfolio to a specific financial market index, with the intent of duplicating the performance of the market index

Typical Usage

I won't invest in any exchange-traded fund that isn't large, liquid, and easy to understand.†

exchange-traded fund = mutual funds that trade like stocks

Typical Usage

When people talk about investing in the stock market, they are almost always talking about common stocks.†

common stocks = a share of the corporation's profits and a share of the voting power in shareholder elections

Typical Usage

The bear market will reduce capital gains tax revenue.†

bear market = a stock market characterized by falling prices

Typical Usage

It's easy to look like a smart investor in a bull market.†

bull market = a stock market characterized by rising prices

Typical Usage

They submitted their disagreement to binding arbitration.

arbitration = the hearing and determination of a dispute by an impartial referee

Typical Usage

It is the optimal solution.†

optimal = most desirable possible — often given the circumstances

Typical Usage

I've learned to buy mutual funds online without a broker.†

broker = someone who negotiates or facilitates agreements between other parties (such as a real estate or stock broker)

Typical Usage

We sell software used by real estate brokerages.†

brokerages = a firm where brokers work

Typical Usage

susceptible to colds†

susceptible = easily influenced, harmed, or impressed emotionally

Typical Usage

a proven research methodology†

methodology = a system of principles and procedures for doing or studying something

Typical Usage

The problem with the price/earnings ratio is that earnings fall so fast in a recession.†

price/earnings ratio = the price of a stock divided by earnings per share; for example, if the share price is $150 and company earnings are $10 per share, then the P/E ratio is 15

Typical Usage

We're comparing term life insurance policies.†

term life insurance = life insurance coverage for a specific period of time

Typical Usage

The sales agent convinced us we should buy whole life insurance even though it cost more.†

whole life insurance = insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the remaining lifetime of the insured — typically there is also a savings plan attached (with some tax shelter)

Typical Usage

California and Texas are two of the community property states.

community property = property and income belonging jointly to a married couple

or:

the principle that property acquired during a marriage and funds that are commingled during the marriage are jointly owned

Typical Usage

By law, you can request a free credit report on you from any of the credit bureaus.†

credit bureaus = a private firm that maintains consumer credit data files and provides credit information to authorized users for a fee

Typical Usage

My checking account has overdraft protection.†

overdraft = withdrawing (or attempting to withdraw) more money out of an account than is available in it

Typical Usage

It's a no-load fund, but it has high annual fees.†

no-load fund = a mutual fund that does not charge a "sales commission" for buying or selling its shares

Typical Usage

We knew we wouldn't move, so we paid a little extra to get a fixed rate loan.†

fixed rate loan = a loan in which the interest rate remains the same for the entire term of the loan

Typical Usage

We got an adjustable rate loan because it was cheaper and we thought our income would be much higher later.†

adjustable rate loan = a loan in which the interest rate may vary over the term of the loan

Typical Usage

She died intestate.

intestate = without a will

Typical Usage

She likes to win, but she doesn't derive pleasure from watching others lose.

derive = get

Typical Usage

We aim to have our sales people earn 20% of their salary in sales commissions.†

sales commissions = any percentage of a sale price that a salesperson is paid for facilitating the sale

Typical Usage

Our line of credit is at the prime rate + 1 percent.†

prime rate = the short-term interest rate announced by leading banks to charge their best customers

Typical Usage

I earn about the same as at my last job, but the fringe benefits are great.†

fringe benefits = an indirect, non-cash benefit provided to employees by employers in addition to regular wage or salary compensation, such as health insurance

Typical Usage

The share price is down since I bought, but the stock split, so my investment is actually worth more money.†

stock split = an increase in the number of outstanding shares of a corporation without changing the percentage of the company owned by each shareholder

Typical Usage

The standard deduction is increased for those who are old or blind.†

standard deduction = For U.S. income tax, a base amount of income not subject to tax for taxpayers who do not itemize deductions.

Typical Usage

Disposable incomes have barely kept pace with inflation.†

disposable incomes = income (after taxes)

or (less commonly and arguably better referred to as discretionary income): income not required for reasonable and necessary living expenses

Typical Usage

I found a less expensive title insurance company than the one recommended by my realtor.†

title insurance = insurance protecting the homeowner and lenders against loss resulting from presumed sale of real estate that the seller was not free to sell

Typical Usage

My grandmother own their home free and clear.†

free and clear = ownership of property where it is free from all debts

Typical Usage

What is a fair market calculation of the present value of the lottery payments if I don't take the lump sum?†

present value = finance:  the current value of one or more payments to be received or paid in the future

Typical Usage

If I keep the rental occupied and there are no unexpected expenses, what is the net present value of the investment?†

net present value = the difference between the present value of the cash inflows and the present value of the cash outflows associated with an investment

Typical Usage

Their balance sheet shows a precipitous plunge in liquid assets.†

liquid assets = cash or an asset (something of value) that is easily converted into cash

Typical Usage

My grandmother got a reverse mortgage so she wouldn't have move from her home.†

reverse mortgage = a type of loan used by older homeowners as a way of converting the net value of their home into a cash payment (or series of payments) while retaining ownership of their property

Typical Usage

The interest rate re-set and now the debt service is too high.†

debt service = the amount of a periodic loan payment (including interest and principal)

Typical Usage

She challenged the codicil.†

codicil = an instruction added to a will

Typical Usage

The market was climbing so fast that my limit order purchase was never executed.†

limit order = an order to a broker to buy a certain stock (or other financial instrument) only if its price is no more than a specified level or to sell a only if the price is no less than a specified level

Typical Usage

The IRS can and does garnish wages for unpaid taxes.†

garnish wages = having a percentage of someone's wages paid to a third party who is owed money by the employee due to a court judgment

Typical Usage

The rule of 72 is useful for in-the-head approximations.†

rule of 72 = finance:  method of estimating the time required to double an investment; 72 divided by the annual return percentage

For example:  If an investment returns 12%, the invested funds will have doubled in 6 years (72 divided by 12 equals 6).

Typical Usage

Texas and Florida are amongst the states that have a homestead exemption.†

homestead exemption = an amount of the value of one's home that some states and local jurisdictions deduct from the value subject to property tax

Typical Usage

He was swindled by a con artist.†

con artist = someone who tricks another for financial gain

Typical Usage

How long is the counteroffer binding?†

counteroffer = the rejection of an offer to buy or sell that simultaneously makes a different offer

Typical Usage

I thought I had more money in my account and my check bounced.†

check bounced = a check that a bank has refused to cash or pay because the account holder does not have sufficient funds to cover it in their account

Typical Usage

We're paying tuition for the college on their installment plan.†

installment plan = a method of buying personal property on credit and making payments at regular intervals for a specific term

Typical Usage

We included $10,000 earnest money with our offer, so they would know we are serious.†

earnest money = a small initial deposit attached to an offer to purchase real estate

Typical Usage

I still have checks, but I ran out of deposit slips.

deposit slips = a slip of paper made to lists the amount of money and each check being deposited into a bank account

Typical Usage

we disclaim any responsibility for the accident†

disclaim = to deny:  responsibility for, knowledge of, or ownership of

Typical Usage

The bank is covered by FDIC insurance.†

FDIC insurance = a government corporation that insures the first $100,000 of each account in banks that are members of the Federal Reserve System

Typical Usage

We're trying to reduce overhead in case John is laid off.†

reduce overhead = for a business:  recurring costs that are not direct inputs into generating income

or:

for a household:  all recurring costs (such as rent, utilities, car payments, groceries, etc.)

Typical Usage

Pyramid schemes are illegal in the United States.†

pyramid schemes = a fraudulent scheme in which people are recruited to make payments to the person who recruited them while expecting to receive payments from the persons they recruit; when the number of new recruits fails to sustain the hierarchical payment structure the scheme collapses with most of the participants losing the money they put in

Typical Usage

According to the Kelley Blue Book, my car is worth less than I owe on it.†

Kelley Blue Book = Most commonly refers to a used car's estimated value, but can also reference the company called "Kelly Blue Book" or the book they publish of estimated car values.

Typical Usage

I avoid investing in financial derivatives I don't understand.†

financial derivatives = a tradable financial product whose value depends on something else — usually the value of a commodity or a rate (such as interest, or currency rate), but it could be anything; e.g., the weather

often shortened to "derivative"; though that word can have different meanings depending upon the context

Typical Usage