chapter 1 Flashcards
1
Q
investment
A
anything you purchase with the hope that it will provide you with income either now or in the future
2
Q
Real Assest
A
tangible property with value due to its substance and/or properties
3
Q
Financial Asset
A
A Claim on a real asset or a real asset’s income
4
Q
Asset Allocation
A
The decision to invest in one type of asset over another
5
Q
Debt/Fixed Income
A
Money Market Instruments (bank CD, T-Bill, commerical paper) and Bonds
6
Q
Equity/common stock
A
Ownership stake in the entity, residual cash flow
7
Q
Derivative securities
A
A contract whose value is derived from some underlying market condition
8
Q
Security selection
A
actively trying to choose individual stocks, bonds, etc. that you believe will provide you with a better return than the market.
