{"id":538,"date":"2023-03-28T16:23:04","date_gmt":"2023-03-28T16:23:04","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/?post_type=chapter&p=538"},"modified":"2023-04-03T03:48:44","modified_gmt":"2023-04-03T03:48:44","slug":"glossary-of-key-terms-part-ii","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/chapter\/glossary-of-key-terms-part-ii\/","title":{"raw":"Glossary of Key Terms (Part II)","rendered":"Glossary of Key Terms (Part II)"},"content":{"raw":"
\r\n \t
\r\n

Chapter 9 Glossary of Key Terms (Part II)<\/h2>\r\n<\/dt>\r\n \t
annuity<\/dt>\r\n \t
a stream of regular, periodic payments to be received or paid<\/dd>\r\n<\/dl>\r\n
\r\n \t
annuity due<\/dt>\r\n \t
a stream of periodic payments in which the payment or receipt occurs at the beginning of each period<\/dd>\r\n<\/dl>\r\n
\r\n \t
constant perpetuity<\/dt>\r\n \t
a stream of periodic payments that is expected to continue indefinitely with no change in the amount paid or received<\/dd>\r\n<\/dl>\r\n
\r\n \t
discount rate<\/dt>\r\n \t
an interest rate used in time value of money calculations to determine present value; may derive from several sources, such as stated contract rates, costs to borrow, or expected rates of return on investments<\/dd>\r\n<\/dl>\r\n
\r\n \t
effective interest rate<\/dt>\r\n \t
the interest rate that results when compounding occurs multiple times within a year; the true cost of borrowing<\/dd>\r\n<\/dl>\r\n
\r\n \t
growing perpetuity<\/dt>\r\n \t
a stream of periodic payments that is expected to continue indefinitely with growth of the amount paid or received in the future, usually by a fixed percentage<\/dd>\r\n<\/dl>\r\n
\r\n \t
loan amortization<\/dt>\r\n \t
the scheduling of periodic repayment of a debt, typically involving regular payments or receipts of amounts that include both interest payment and repayment of the principal of the amount owed<\/dd>\r\n<\/dl>\r\n
\r\n \t
lump sum<\/dt>\r\n \t
a single cash payment made in lieu of a series of future payments, such as a lottery payout or a legal settlement<\/dd>\r\n<\/dl>\r\n
\r\n \t
ordinary annuity<\/dt>\r\n \t
a stream of periodic payments in which the payment or receipt occurs at the end of each period<\/dd>\r\n<\/dl>\r\n
\r\n \t
perpetuity<\/dt>\r\n \t
a stream of periodic payments that is expected to continue indefinitely<\/dd>\r\n<\/dl>\r\n
\r\n \t
preferred stock<\/dt>\r\n \t
shares of ownership in a corporation that typically entitle the holder to a fixed dividend per share, if declared by the corporation, with priority over holders of that corporation\u2019s common stock<\/dd>\r\n<\/dl>\r\n
\r\n \t
required rate of return<\/dt>\r\n \t
the minimum amount of return that an investor will accept on an investment given the level of risk involved<\/dd>\r\n<\/dl>\r\n
\r\n \t
retirement planning<\/dt>\r\n \t
the process of determining one\u2019s objectives for retirement, including one\u2019s finances, and developing strategies and tactics to achieve them<\/dd>\r\n<\/dl>\r\n
\r\n \t
structured settlements<\/dt>\r\n \t
monetary legal settlements that are paid out in installments, such as an annuity, rather than a lump sum cash amount<\/dd>\r\n<\/dl>\r\n \r\n\r\nAttribution:<\/strong>\r\n\r\nThis chapter is from \u201cPrinciples of Finance\u201d \u00a0https:\/\/openstax.org\/books\/principles-finance\/pages\/1-why-it-matters<\/a> by Dahlquist and Knight. This book is licensed under the CC-BY<\/a> 4.0 license. 2022 OpenStax.\r\n\r\nhttps:\/\/openstax.org\/books\/principles-finance\/pages\/1-key-terms<\/a>\r\n\r\nAccess for free at https:\/\/openstax.org\/books\/principles-finance\/pages\/8-key-terms<\/a>","rendered":"
\n
\n<\/dt>\n
annuity<\/dt>\n
a stream of regular, periodic payments to be received or paid<\/dd>\n<\/dl>\n
\n
annuity due<\/dt>\n
a stream of periodic payments in which the payment or receipt occurs at the beginning of each period<\/dd>\n<\/dl>\n
\n
constant perpetuity<\/dt>\n
a stream of periodic payments that is expected to continue indefinitely with no change in the amount paid or received<\/dd>\n<\/dl>\n
\n
discount rate<\/dt>\n
an interest rate used in time value of money calculations to determine present value; may derive from several sources, such as stated contract rates, costs to borrow, or expected rates of return on investments<\/dd>\n<\/dl>\n
\n
effective interest rate<\/dt>\n
the interest rate that results when compounding occurs multiple times within a year; the true cost of borrowing<\/dd>\n<\/dl>\n
\n
growing perpetuity<\/dt>\n
a stream of periodic payments that is expected to continue indefinitely with growth of the amount paid or received in the future, usually by a fixed percentage<\/dd>\n<\/dl>\n
\n
loan amortization<\/dt>\n
the scheduling of periodic repayment of a debt, typically involving regular payments or receipts of amounts that include both interest payment and repayment of the principal of the amount owed<\/dd>\n<\/dl>\n
\n
lump sum<\/dt>\n
a single cash payment made in lieu of a series of future payments, such as a lottery payout or a legal settlement<\/dd>\n<\/dl>\n
\n
ordinary annuity<\/dt>\n
a stream of periodic payments in which the payment or receipt occurs at the end of each period<\/dd>\n<\/dl>\n
\n
perpetuity<\/dt>\n
a stream of periodic payments that is expected to continue indefinitely<\/dd>\n<\/dl>\n
\n
preferred stock<\/dt>\n
shares of ownership in a corporation that typically entitle the holder to a fixed dividend per share, if declared by the corporation, with priority over holders of that corporation\u2019s common stock<\/dd>\n<\/dl>\n
\n
required rate of return<\/dt>\n
the minimum amount of return that an investor will accept on an investment given the level of risk involved<\/dd>\n<\/dl>\n
\n
retirement planning<\/dt>\n
the process of determining one\u2019s objectives for retirement, including one\u2019s finances, and developing strategies and tactics to achieve them<\/dd>\n<\/dl>\n
\n
structured settlements<\/dt>\n
monetary legal settlements that are paid out in installments, such as an annuity, rather than a lump sum cash amount<\/dd>\n<\/dl>\n

 <\/p>\n

Attribution:<\/strong><\/p>\n

This chapter is from \u201cPrinciples of Finance\u201d \u00a0https:\/\/openstax.org\/books\/principles-finance\/pages\/1-why-it-matters<\/a> by Dahlquist and Knight. This book is licensed under the CC-BY<\/a> 4.0 license. 2022 OpenStax.<\/p>\n

https:\/\/openstax.org\/books\/principles-finance\/pages\/1-key-terms<\/a><\/p>\n

Access for free at https:\/\/openstax.org\/books\/principles-finance\/pages\/8-key-terms<\/a><\/p>\n","protected":false},"author":101,"menu_order":2,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-538","chapter","type-chapter","status-publish","hentry"],"part":36,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/users\/101"}],"version-history":[{"count":5,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/538\/revisions"}],"predecessor-version":[{"id":1394,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/538\/revisions\/1394"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/parts\/36"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/538\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/media?parent=538"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapter-type?post=538"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/contributor?post=538"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/license?post=538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}