Consumer Economics Glossary

This is when the stock market is consistently down with prolonged price declines.

A private nonprofit organization that promotes and monitors ethical.

A certificate issued by a government or corporation where the issuer agrees to pay the holder an agreed-upon amount with interest. A type of debt comparable to an IOU. Making a bond purchase is providing a loan to its issuer (a corporation, government, or municipality). The bond has a specified interest rate, so you will receive the principal paid with interest at the bond’s maturity date. Selling bonds is a common way for governments and businesses to raise capital.

When you document your expected income and your expenses for a specified period to determine the amount of money remaining.

When the average share price increases over an extended period causing the market indexes to increase. Expectations of future profits drive stock prices. Assume a growing economy has increased consumer demand, and companies are expanding to keep pace. Employment is rising. People feel confident and purchase items they have put off, such as a new house or car. Profits are expected to increase because the future is bright. Stock prices are rising, and few expect the trend to end soon. This is a bull market because there is an extended period of rising stock prices.

The money a business receives for selling its goods and services.

This is your purchasing power, the number of goods or services that can be purchased by a given unit of currency, considering the effect of inflation. Basically, how much money you have available to buy things.