U.S. SECURITIES AND EXCHANGE COMMISSION
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Financial Security
—
Having an appropriate financial plan and
enough financial resources to adequately
fulfill any needs or most
wants of an individual or business.
Inflation
—
A general upward movement in the price of goods or
services is known as inflation. Supply and demand and the amount
of money in circulation can increase inflation. Over time, inflation
erodes the
purchasing power of a currency, making the currency
worth less. It also erodes the value of fixed payments to bondhold-
ers, one of the risks of investing in fixed-income securities.
Interest
—
The price paid for borrowing money. It
is expressed as
a percentage rate over a period of time. Interest rates may be fixed,
meaning the rate is set and will not change, or
may be variable or
“floating,” meaning the rate may move higher or lower over time.
Invest
—
To engage
in
any activity in which money is put at risk
in the hope of making a profit.
Investment Adviser
—
An investment
professional who gives ad-
vice to clients about investing in stocks, bonds, mutual funds or
other assets. Some investment advisers also manage portfolios of
securities. By law, investment advisers are required to act in the
best interest of their customers.
Liability/Debt
—
An amount owed
to a person or organization
for borrowed funds. Loans, notes, bonds and mortgages are forms
of debt
.
These different forms all call for borrowers to pay back the
amount they owe, typically
with interest, by a specific date, which
is set forth in the repayment terms.
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