Investing Flashcards
The use of long term savings to earn a financial return
Investing
A rise in the general level of prices
Inflation
A technique for estimating the number of years required to double your money at a given rate of return
Rule of 72
Your first amount set aside for investment purposes only
Initial investing
Making investments on regular and planned basis
Systematic investing
A collection of investments
Portfolio
The careful management of investment alternatives to maximize growth of your portfolio over the next five to ten years
Strategic investing
Making bold and high risk investment choices
Speculative investment
The chance that an investments value will decrease
Investing risk
The spreading of risk amount many types of investments
Diversification
Investment choices that should be reevaluated within a year or less
Temporary investments
Investment choices that are held for the long run of five or longer
Permanent investments
Investors who will like to take on a great deal of risk
Risk takers
Those afraid to make investments in which they might lose some or all of their investments
Risk averse
Investors who like to take on a great deal of risk
Risk takers
A summary of a corporations financial results for the year and its prospects for the future
Annual report
A debt obligation or corporation or a state or local government
Bond
A unit of ownership in a corporation
Stock
The pooling of money from many investors to buy a large section of securities
Mutual fund
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
Annuity
Buildings and land
Real estate
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
Futures
The right, but not the obligation to buy or sell stock or a commodity for a specified price within a specified time period
Option
Low priced stocks of small companies that have no track record
Penny stocks
Any physical asset that appreciates in value over time because it is rare or desired by many
Collectible
Provide extensive financial data to clients
Investor services
Have completed education requirements and have passed cfp board certification exams
Certified financial planner
When you are a stockholder, you will share in a corporations profits, which are paid to you as ??
Dividends
The company does well, you are also earn returns in the increased value of the stock you own called ??
Capital gains
The chance that inflation will rise faster than return on your investments
Interest rate risk
Refers to actions the government might take that would reduce the value of your investments
Political risk
Is caused by the business cycle periods if economic growth or decline
Market risk
