Chapter 2 Vocab

Question 1

Growth and income funds

Answer 1

Large cap

Question 2

Always check this record when investing

Answer 2

5 to 10 year track record

Question 3

Spread around the risk

Answer 3

Diversification

Question 4

Piece of ownership in the company stock

Answer 4

Share

Question 5

List of your investments

Answer 5

Portfolio

Question 6

Least liquid of all investments

Answer 6

Rental real estate

Question 7

Degree of uncertainty of the return on investments

Answer 7

Risk

Question 8

Aggressive growth funds

Answer 8

Small cap

Question 9

Savings account within an insurance company

Answer 9

Annuity

Question 10

Risk goes up, return goes up

Answer 10

Risk return ratio

Question 11

A mutual fund that seeks to provide long-term capital growth

Answer 11

Aggressive growth stock fund or small-cap fund

Question 12

Savings account within an insurance company

Answer 12

Annuity

Question 13

A dept instrument Where an issuer agency owes you money

Answer 13

Bond

Question 14

Saving account with a slightly higher interest-rate

Answer 14

C.D Certificate of deposit

Question 15

A physical substance that investors buy or sell

Answer 15

Commodity

Question 16

To spread around the risk

Answer 16

Diversification

Question 17

Distribution of a portion of a companies earnings to a class of its shareholders

Answer 17

Dividend

Question 18

Type of annuity That guarantees a certain rate of return

Answer 18

Fixed annuity

Question 19

A term used to designate all contracts for future delivery on a commodity exchange

Answer 19

Futures

Question 20

Arrangement or accounts in which one would Put their money for a long-term growth

Answer 20

Investments

Question 21

Fund that buys stock In medium size companies that have experienced some growth and are still expanding

Answer 21

Growth stock mutual funds

Question 22

Quality of an asset that permits it to be converted quickly into cash without loss of value

Answer 22

Liquidity

Question 23

Mutual fund containing a group of medium size companies that are growing

Answer 23

Mid-cap fund

Question 24

Good place to put your emergency fund

Answer 24

Money market

Question 25

Money manages buy an investment company and invested in multiple companies

Answer 25

mutual fund

Question 26

A list of your investments

Answer 26

Portfolio

Question 27

Buying real estate to rent out as an investment

Answer 27

Rental real estate

Question 28

Degree of uncertainty of the return on an investment

Answer 28

Risk

Question 29

Mutual fund that contains international or overseas companies

Answer 29

International stock mutual fund

Question 30

Relationship of substantial reward in companies to the amount of risk taking

Answer 30

Risk return ratio

Question 31

An account that helps you accumulate and save money while earning a small amount of interest

Answer 31

Savings account

Question 32

A piece of ownership in a company stock

Answer 32

Share

Question 33

Futures contracts with the underlying asset being one particular stock

Answer 33

Single stocks

Question 34

Purchasing risky investments that could either end in large profit or large loss

Answer 34

Speculative

Question 35

The past history of investments

Answer 35

Track record

Question 36

Annuity that has a varying rate of return Based on the mutual funds in which one has invested

Answer 36

Variable annuity