Finance in Excel

3 Functions

• =PMT(Int Rate, Length, Loan Amount)

• =FV(Int Rate, Length, PMT, PV)

• =PV(Int Rate, Length, PMT, FV)

401k

• A defined contribution plan offered by a corporation to its employees, which allows employees to set aside tax-deferred income for retirement purposes, and in some cases employers will match their contribution dollar-for-dollar.

IRA

• Individual Retirement Account: represents a retirement account, usually offering various tax advantages and benefits in view of retirement savings

Stock

• A share in ownership in certain company

Mutual Fund

• Collects money from a number of investors and then invests them in money market instruments that are short term, stocks, bonds, and other securities types.

Bond

• The bonds are a form of debt security in which the issuer owes a debt to the bondholders. The issuing institution will repay the principal at a fixed date, named maturity date. Depending on the term of the bond, we can differentiate between three categories of bond maturities. Bills will have maturities up to one calendar year. Notes will have maturities in the range of one to ten years. The maturity of bonds will exceed ten years.

NY Stock Exchange

• The largest Stock Exchange in the world is the New York Stock Exchange, located at Wall Street in Manhattan, NY.

NASDAQ

• A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the world's first electronic stock market.

Dow Jones

• Dow Jones Industrial Average

• An index based on the share value of the top 30 blue-chip stocks listed on NYSE (New York Stock Exchange).

S&P 500

• An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

beta

• A measure of a mutual fund’s risk. Below 1 is below average risk. Above 1 is above average risk.

Volume

• The number of shares traded in a day