Understanding Currency and Investments

These flashcards cover key vocabulary and concepts related to currency, investments, and economic principles as discussed in the lecture.

Standard Currency

A currency that is widely accepted and used as a benchmark for others, often represented by the US dollar.

Gold Standard

A monetary system where the value of a currency is directly linked to gold, historically used before modern fiat currencies.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Investment

The act of allocating resources, usually money, in order to generate income or profit.

Asset

Anything of value or a resource owned by an individual or entity.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Collateral

An asset that a borrower offers to a lender to secure a loan.

Dividend

A portion of a company's earnings distributed to shareholders, usually on a quarterly basis.

Venture Capitalist

An investor who provides capital to startup firms and small businesses with perceived long-term growth potential.

Exchange Traded Fund (ETF)

A type of investment fund that is traded on stock exchanges, much like stocks.

NASDAQ

A global electronic marketplace for buying and selling securities, primarily technology stocks.

Prospectus

A legal document that provides details about an investment offering to the public.

Earnings Report

A quarterly report that publicly-traded companies are required to file with the SEC that outlines their profitability.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods.