Chapter 5 - Investing

Question 1

assets

Answer 1

something of value e.g. property, house, shares

Question 2

blue chip shares

Answer 2

very safe and secure shares

Question 3

Capital Gains Tax

Answer 3

the tax on the profits arising from the increased value of assets such as shares or property

Question 4

debenture

Answer 4

a document issued by a firm when you lend a sum of money

Question 5

dividend

Answer 5

part of a firm’s profit that is divided among shareholders

Question 6

ethical

Answer 6

acceptable to society’s current standards

Question 7

fixed interest rate

Answer 7

interest rate that remains the same for the period of the loan

Question 8

income and expenditure account

Answer 8

a record of income earned and money spent during the previous week

Question 9

investment

Answer 9

putting money into something in order to make a profit. Individuals, government and business all carry out investment.

Question 10

investment portfolio

Answer 10

all the investments and individual has

Question 11

managed fund

Answer 11

a pool of money that comes from people who have similar investment goals. It is invested by a fund manager in assets such as shares or property.

Question 12

rate of return

Answer 12

the profit you receive on you investment as a percentage of the original investment

Question 13

share

Answer 13

a part ownership of a public company

Question 14

stockbroker

Answer 14

individual or firm that specialises in buying and selling shares

Question 15

superannuation

Answer 15

a way of saving so an employee has some money in retirement

Question 16

superannuation fund

Answer 16

a managed fund designed specifically to produce benefits when you retire.

Question 17

unsecured note

Answer 17

similar to a debenture except the holders of there are one of the last to be repaid if a firm is liquidated.

Question 18

variable interest rate

Answer 18

rate that moves up or down depending on market forces