Glossary 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
Adjustable-rate mortgage: A type of mortgage in which the interest rate charged may be changed at fixed intervals, usually in response to changes in some predetermined financial index. Amortize: To spread the cost over a period of time. Annuity: A form of insurance in which the policyholder, called the annuitant, pays a specified sum of money and in return receives regular payments for the rest of his or her life. Appreciation: An increase in the value of any property; used especially in reference to an increase in the value of a stock, bond, or other security. Assay: To analyze gold or silver bullion and so determine the proportion of precious metal it contains. Back-end load: A sales fee or commission charged by the management of a mutual fund at the time the shares in the fund are sold. (See also Front-end load.) Balloon mortgage: A type of mortgage in which the entire principal comes due within two to five years, at which time the loan must be repaid or refinanced at current interest rates. Beneficiary: The person who receives financial benefit as a result of a will, an insurance policy, or a trust fund. Bond: An IOU issued by a corporation or government agency promising to pay a specified amount of interest for a specified period of time in exchange for an amount of money being lent to the corporation or agency.
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