Chapter 11-Investing Flashcards
Use of savings to earn a financial return
Innvesting
A rise in general level of prices
Inflation
Professional investment planners
Financial advisers
The spreading of risk among three types of investments
Diversification
A formula used to estimate time or rate to double your money
Rule of 72
Represents ownership in a corporation
Stock
Debt obligations of corporations and government
Bonds
Pools money of many investors and buys a large section of securities
Mutual funds
Contracts to buy and sell commodities for a specified price on a specified future dates
Futures
Low-priced stocks of small companies that have no track record
Penny stocks
Buying assets with the hope of earning huge gains over a short period of time
Speculating
A document that gives the financial history of a corporation
Annual report
Government actions that affect business profits
Political risk
A person who buys and sells securities for clients
Broker
Sections of a newspaper containing financial data
Financial pages
Provides financial data for interpretation
Discount