Chapter 2 Vocab Flashcards
Growth and income funds
Large cap
Always check this record when investing
5 to 10 year track record
Spread around the risk
Diversification
Piece of ownership in the company stock
Share
List of your investments
Portfolio
Least liquid of all investments
Rental real estate
Degree of uncertainty of the return on investments
Risk
Aggressive growth funds
Small cap
Savings account within an insurance company
Annuity
Risk goes up, return goes up
Risk return ratio
A mutual fund that seeks to provide long-term capital growth
Aggressive growth stock fund or small-cap fund
Savings account within an insurance company
Annuity
A dept instrument Where an issuer agency owes you money
Bond
Saving account with a slightly higher interest-rate
C.D Certificate of deposit
A physical substance that investors buy or sell
Commodity
To spread around the risk
Diversification
Distribution of a portion of a companies earnings to a class of its shareholders
Dividend
Type of annuity That guarantees a certain rate of return
Fixed annuity
A term used to designate all contracts for future delivery on a commodity exchange
Futures
Arrangement or accounts in which one would Put their money for a long-term growth
Investments
Fund that buys stock In medium size companies that have experienced some growth and are still expanding
Growth stock mutual funds
Quality of an asset that permits it to be converted quickly into cash without loss of value
Liquidity
Mutual fund containing a group of medium size companies that are growing
Mid-cap fund
Good place to put your emergency fund
Money market
Money manages buy an investment company and invested in multiple companies
mutual fund
A list of your investments
Portfolio
Buying real estate to rent out as an investment
Rental real estate
Degree of uncertainty of the return on an investment
Risk
Mutual fund that contains international or overseas companies
International stock mutual fund
Relationship of substantial reward in companies to the amount of risk taking
Risk return ratio
An account that helps you accumulate and save money while earning a small amount of interest
Savings account
A piece of ownership in a company stock
Share
Futures contracts with the underlying asset being one particular stock
Single stocks
Purchasing risky investments that could either end in large profit or large loss
Speculative
The past history of investments
Track record
Annuity that has a varying rate of return Based on the mutual funds in which one has invested
Variable annuity
