Dave Ramsey Foundations In Personal Finance Chapter 2

Liquidity – Refers to the speed and ease with which an asset can be converted to cash without significant loss of value
EBIT margin – By comparing operating or EBIT margins across firms within an industry, we can assess the relative efficiency of the firm's operations. Differences in operating margins can result from corporate strategy.
seasoned mortgage – a mortgage in existence for some time that has a good record of repayment by the mortgagor.
listing Requirements – Financial standards that corporations must meet before their common stock can be traded on a stock exchange. Listing requirements are not standard, but are set by each exchange. The requirements for the NYSE are the most stringent.
Debtors – Customers who owe the business money.
Short term solvency – Ability to pay bills in short run
The ________ is the annual coupon payment divided by the current price of the bond, and is not always an accurate indicator.
Payback Period – Number of years to recover initial cost
If your health insurance has a high deductible, then the insurance probably has – Lower premiums
certificate of deposit-CD – This is when you deposit your money with a bank and promise to leave it there for a certain amount of time and they promise that you that you will receive a higher interest than in a regular savings account.
Default – When a firm fails to make the required interest or principal payments on its debt, or violates a debt covenant

After the firm defaults, debt holders are given certain rights to the assets of the firm and may even take
legal ownership of the firm's assets through
bankruptcy.

3 turnover ratios – 1. Inventory
2. Asset
3. Fixed asset
Income Stock – Stocks that pay a higher-than-average dividend.
SMART GOALS – S: specific M: measurable A: attainable R: relevent T: time bound
The ________ is the аnnuаl cоupоn pаyment divided by the current price оf the bond, and is not always an accurate indicator.
Medicare Part D – Prescription drug coverage entitled to Medicare Part A or Medicare Part B.
Escalation clause – clause in some mortgages that allow the lender to increase the int rate and payment
Periodic expenses – Item in budget that will occur frequently
What is a W2 statement? – a statement of earnings

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