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GLOSSARY:
Account:
A business agreement between two or more people
or companies that includes the exchange of money
or some other asset. For example, you might have
a savings account, checking account, and/or
credit card account.
American Stock Exchange (AMEX):
The country's second-largest stock exchange.
AMEX is based in New York and generally uses
more lenient rules for listing stocks than the
New York Stock Exchange (NYSE). Thus, it
contains more stocks and bonds issued by small
companies. AMEX is also called "The Curb"
because it was formed by a group of brokers who
would meet on the curb outside the NYSE to trade
stocks that didn't meet NYSE's listing
requirements. In 1998, the NASDAQ purchased
AMEX, but the companies continue to operate
separately.
ATM card:
A plastic card that allows you to get basic
financial services from an automated teller
machine.
Checking account:
An agreement that allows you to write a check
for payment from deposits in a financial
institution. Some credit unions call a checking
account a share draft account.
Credit card:
A plastic card that allows you to borrow money
or buy products and services on credit with your
signature. The lender that issues the credit
card puts a dollar limit on its use, depending
on your creditworthiness. (Compare with debit
card.)
Debit card: A plastic card that you can use like
a credit card. The difference is that a credit
card lets you borrow money for a purchase, while
a debit card makes payment immediately and
electronically from your checking account or
savings account; also called "check card" or
"cash card."
Exchange rate:
The rate at which you can convert one nation's
currency into another (also called "foreign
exchange rate"). An online exchange rate
calculator will tell you what your money would
be worth in any of several other countries.
Balance:
1. The amount of money in an account. 2.
Comparing your personal check records with the
checking account statement your credit union
sends you to make sure the amounts match, or
"balance." Also known as "reconciling" your
checking account. |
