Credit and Stocks Flashcards

Flashcards about credit scores and stocks.

Credit Score Range (Low)

Ranges from 500-589; Borrowing at approximately 18%.

Credit Score Range (High)

Ranges from 720-850; score means less you'll spend overall.

Revolving Credit

Borrow as little as wanted up to limit with flexible repayment; ex. credit cards and home equity lines of credit.

Installment Credit

Specific amount with set monthly payments; ex. mortgages and car loans.

Credit Reporting Agencies

Experian, Equifax, and TransUnion are the main agencies.

Bull Market

A market in which share prices are rising, encouraging buying.

Bear Market

A market in which share prices are falling, encouraging selling.

Initial Public Offering (IPO)

When stock is initially offered to the public; companies seek capital to grow by selling shares of ownership.

Growth Stock

Stock where the dividends are reinvested into the company; examples include Etsy, Netflix, and Google.

Dividends

Optional payments of annual profits to stockholders, normally distributed quarterly.

Defensive Stocks

Stocks of companies that produce something people will buy regardless of the health of the economy; they hold value in a bear market but won't have sharp price increases in a bull market.

Cyclical Stocks

Shares in companies that sell goods and services people will buy when the economy is strong and avoid when the economy is weak.

DJIA

Dow Jones Industrial Average, a stock market index.

S&P500

A stock market index.