definitions Flashcards
investment
An asset bought with the aim of producing an income and/or an increase in value over time.
property
Land and/or buildings, purchased to provide an income and/or capital growthsuper
shares
Sometimes known as stocks, securities or equities where you are part owner in a large company.
brokerage
A fee charged by a broker for service
superannuation
Money that you and your employers put into a special fund during your working life to provide you with money to live on when you retire
loan
An amount of money provided to you which must be repaid (usually with a fee such as interest)
risk
The chance an investment won’t give you the outcomes you want
diversification
Managing the risk/reward trade-off by selecting a mix of investments that will work to achieve your financial goals within your chosen time frame.
goals
Clarifying your own needs and what you are trying to achieve.
dividend
Payment for your share of the profits as being part owner of a company
collateral
Property or asset you put up as security for a loan
fixed rate loan
Allows you to lock in an interest rate on your loan, typically for 1 to 5 years
rate of return
the amount of money your investment earns
equity
The value of an asset such as your house or property, less any money owing on it
economy
area of production, trade, distribution and consumption of goods and services by different agents in a given location
