Investment Flashcards
1
Q
Investment
A
Money is saved in order to make it grow
2
Q
4 major investment
A
Equities
Bonds
Property
Cash
3
Q
Cash
Low risk
A
Invest at the bank
Cash is protected by the bank
Interest rate is low
4
Q
Property (moderate risks )
A
Investment in property and capital will grow over time
Can gain large growth overtime
Property value decrease because of crime and damage to property
5
Q
Bonds
A
Loans to business paid back with interest
Interests are higher than banks
Company may be unsuccessful and not able to pay loan back
6
Q
Equity
A
Purchase shares
High returns if business is successful
External influence affect share price
7
Q
Diversification
A
The process of a company enlarging or varying its range of product
