19.5 other investments Flashcards
the value of collectibles is most influenced by:
- the current tax rate on investments
- government regulations of the market
- the futures market for commodities
- interested buyers and potential sellers
interested buyers and potential sellers
What are some agricultural products traded on commodity exchanges?
- corn
- soybeans
- wheat
____ are bought and sold on exchanges similar to stock exchanges, buyers and sellers are represented by traders on the exchanges
commodities are bought and sold on exchanges similar to stock exchanges
agreements to buy or sell an amount of a commodity at a specified price in the future
futures contract
What is an advantage of collectibles?
the personal pleasure of buying, collecting, storing, arranging and displaying what is collected
an investment with an unusually high risk
speculative investment
items of personal interest to collectors that can increase in value in the future
collectibles
using your savings to earn more money
investing
what is one of the best known commodities exchanges?
Chicago Board of Trade (CBOT)
the percentage of money earned on your savings or investment over a year, also called the rate of return
yield
the ease with which an investment can be changed into cash without losing its value
liquidity
land and anything that is attached to it
real estate
include grain, livestock, and precious metals
commodities
What types of commodities are commonly used with futures contracts?
- agricultural commodities
- currencies commodities
grain, livestock, and precious metals
commodities
the price at which a share of stock can be bought and sold in the stock market
market value
What affects the prices of precious metals?
- economic conditions
- supply and demand
investors have traded ___ and ___ on commodity markets for centuries.
investors have traded gold and silver on commodity markets for centuries
licensed specialist in the buying and selling of stocks and bonds
stockbroker
storage of money for future use
saving
____ producers sell their crops in advance of a harvest at what they beleive is a good price, farmers will then know in advance how much they will receive for a crop
Agricultural producers sell their crops in advance of a harvest at what they beleive is a good price, farmers will then know in advance how much they will receive for a crop
items of personal interest to collectors that can increase in value in the future
collectibles
the difference between the price at which you could currently sell your house and the amount owed on the mortgage
equity
bonds issued by local and state governments
municipal bond
What are common types of collectibles?
- stamps
- coins
- sport trading cards
- art
- antiques
an agreement to buy or sell an amount of a commodity at a specified price in the future
futures contract
bonds issued by corporations
corporate bond
stock that has first priority in the payment of dividends
preferred stock
What currencies are sold on commodities exchange?
- US dollar
- euro
- japanese yen
- treasury bills
- treasury notes
investments set up and managed by comanies that receive money from many investors
mutual fund
What collectibles tend to be items that an investor can make a considerable profit?
- rare stamps
- coins
- art
- antiques
current price quoted for precious metals in the world markets
spot prices
business organizations that accommodate the buying and selling of securities
stock exchange
What are some precious metals that are traded on commodity markets?
- gold
- silver
- copper
- platinum
What are pros and cons of investing in precious metals?
Pros
- protect against currency becoming worthless
- gold could be used for buying goods and services if paper money isn’t accepted
Cons:
- does not earn interest
- only profit if you sell them later at a price higher than what you paid
a legal document giving the lender a claim against real estate property
mortgage
the amount that your local government determines your property to be worth for tax purposes
assessed value
represents general ownership in a corporation and a right to share in its profits
common stock
What conditions affect agricultural commodity prices?
- weather
- international trade agreements
- worldwide demand and supply
the spot price for gold or silver refers to the:
- interest for borrowing to buy the precious metal
- current market price of the precious metal
- future market price of the precious metal
- global price for the metal set by the world bank
current market price of the precious metal
