Investing Flashcards

1
Q

The use of long term savings to earn a financial return

A

Investing

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2
Q

A rise in the general level of prices

A

Inflation

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3
Q

A technique for estimating the number of years required to double your money at a given rate of return

A

Rule of 72

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4
Q

Your first amount set aside for investment purposes only

A

Initial investing

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5
Q

Making investments on regular and planned basis

A

Systematic investing

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6
Q

A collection of investments

A

Portfolio

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7
Q

The careful management of investment alternatives to maximize growth of your portfolio over the next five to ten years

A

Strategic investing

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8
Q

Making bold and high risk investment choices

A

Speculative investment

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9
Q

The chance that an investments value will decrease

A

Investing risk

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10
Q

The spreading of risk amount many types of investments

A

Diversification

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11
Q

Investment choices that should be reevaluated within a year or less

A

Temporary investments

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12
Q

Investment choices that are held for the long run of five or longer

A

Permanent investments

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13
Q

Investors who will like to take on a great deal of risk

A

Risk takers

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14
Q

Those afraid to make investments in which they might lose some or all of their investments

A

Risk averse

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15
Q

Investors who like to take on a great deal of risk

A

Risk takers

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16
Q

A summary of a corporations financial results for the year and its prospects for the future

A

Annual report

17
Q

A debt obligation or corporation or a state or local government

A

Bond

18
Q

A unit of ownership in a corporation

A

Stock

19
Q

The pooling of money from many investors to buy a large section of securities

A

Mutual fund

20
Q

A contract in which you make a lump sum payment or a series of payments that earn interest in return for regular disbursement a often after retirement

A

Annuity

21
Q

Buildings and land

A

Real estate

22
Q

A contract that obligates the buyer to purchase( or the seller to sell) stock or a commodity for a specified price on a specified date in the future

A

Futures

23
Q

The right, but not the obligation to buy or sell stock or a commodity for a specified price within a specified time period

A

Option

24
Q

Low priced stocks of small companies that have no track record

A

Penny stocks

25
Q

Any physical asset that appreciates in value over time because it is rare or desired by many

A

Collectible

26
Q

Provide extensive financial data to clients

A

Investor services

27
Q

Have completed education requirements and have passed cfp board certification exams

A

Certified financial planner

28
Q

When you are a stockholder, you will share in a corporations profits, which are paid to you as ??

A

Dividends

29
Q

The company does well, you are also earn returns in the increased value of the stock you own called ??

A

Capital gains

30
Q

The chance that inflation will rise faster than return on your investments

A

Interest rate risk

31
Q

Refers to actions the government might take that would reduce the value of your investments

A

Political risk

32
Q

Is caused by the business cycle periods if economic growth or decline

A

Market risk