Investing Vocabulary

Question 1

Assets

Answer 1

Items of value

Question 2

Blue chip shares

Answer 2

Very safe and secure shares

Question 3

Capital gains tax

Answer 3

Tax paid on the profits you receive from the increased values of assets such a shares and property

Question 4

Capital growth

Answer 4

The increasing value of an asset over time

Question 5

Company tax

Answer 5

A tax on the profit of companies

Question 6

Cryptocurrency

Answer 6

Digital currency in which encryption techniques are used to verify transfers of money and regulate the production of units of currency

Question 7

Dividend

Answer 7

Part of a company’s profit that is divided amongst shareholders

Question 8

Economy

Answer 8

All activities undertaken for the purpose of production, distribution and consumption of goods and services in a region or country

Question 9

Entrepreneur

Answer 9

A person seeking to start a successful business in a new field whose methods are often seen as innovative

Question 10

Ethical

Answer 10

Acceptable to society’s current standards

Question 11

Fixed interest rate

Answer 11

An interest rate that remains the same for the duration of a loan

Question 12

Income and expenditure account

Answer 12

An ongoing record of income earned and money spent during the previous weeks

Question 13

Investment

Answer 13

An asset purchased that is expected to appreciate in value over time and provide profit to the investor OR the use of money to purchase equipment or premises for the establishment or expansion of a business

Question 14

Investment portfolio

Answer 14

All the investments owned by an individual

Question 15

Managed fund

Answer 15

A pool of money that comes from people with similar investment goals, and invested in assets such as shares/property, by a fund manager

Question 16

Market(s)

Answer 16

An exchange of goods, services or resources between buyers and sellers

Question 17

Mortgage

Answer 17

A loan from a financial institution where something is held as security in case the loan is not repaid, usually a house

Question 18

Rate of return

Answer 18

The profit you receive on your investment as a percentage of your original investment

Question 19

Share

Answer 19

Partial ownership of a company

Question 20

Sharemarket

Answer 20

A place where shares in public companies are bought and sold

Question 21

Stockbroker

Answer 21

Individual or firm that specialises in the buying and selling of shares

Question 22

Superannuation

Answer 22

Money set aside and saved for you whilst you work for retirement

Question 23

Super(annuation)fund

Answer 23

A managed fund designed specifically to produce benefits when you retire, usually invests super to make a profit on your behalf

Question 24

Unsecured note

Answer 24

Similar to a debenture, a document issued by a firm when you lend it money, stating the amount, interest and term of the investment. A unsecured note holder is one of the last to be repaid if a firm is liquidated

Question 25

Variable interest rate

Answer 25

Interest rate that moves up and down depending on market forces