Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Studies > Investment Opportunities > Flashcards

Investment Opportunities Flashcards

1
Q

Investment definition

A

When money is saved in order to make it grow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Major Asset Classes and Risk (4)

A
  • Cash: Low risk
  • Property: Moderate to High risk
  • Bonds: Moderate risk
  • Equity: High risk
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Diversification definition

A

Spreading the investment risk between various asset classes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Risk Profiling (3)

A
  • Investment timeframe
  • Financial position
  • Risk and return considerations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Investment Strategies (4)

A
  • Conservative Investment Strategy
  • Defensive Investment Strategy
  • Balanced Investment Strategy
  • Growth Investment Strategy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Conservative Investment Strategy

A

High income, maintained capital investment, low risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Defensive Investment Strategy

A

Stable income, growth in capital, low risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Balanced Investment Strategy

A

Income and growth, moderate risk over a medium time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Growth Investment Strategy

A

High risk, long-term capital growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Retirement Annuities

A

Monthly premium in return for a lump sum and monthly pension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Pension Fund

A

Retirement savings plan contributed to by employer and employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Endowments

A

A savings plan with a monthly amount paid, for a time period, and then paid out after

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Bull/bear market

A

Bulls are optimistic investors who think share prices are going to go up.
Bears believe share prices will go down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Preference shares

A

Holders can participate in the profits of the company before dividends are declared

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Spread

A

Difference between asking price and bid price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Market capitalisation

A

Share price of a company multiplied by the number of shares in issue

17
Q

Rights offer

A

Offer to existing shareholder to have first option to buy new shares

18
Q

Blue-chip shares

A

Shares in the most solid companies in the market

19
Q

Green-chip shares

A

Company meets environmental issues requirements

20
Q

Black-chip shares

A

If company is BEE compliant

21
Q

Dividends

A

The portion of the companies profit that goes to shareholders

22
Q

Strategies to Limit Losses (2)

A
  • Stop-loss Strategy: A specific cap is set and shares are sold when they hit the cap
  • Rebalancing: Adjusting portfolio so half is invested in equities
23
Q

Unit Trust

A

Group of investors who ‘pool their capital’ to invest in financial markets

24
Q

Methods of Investment (8)

A
  • Retirement anuities/Pension fund
  • Endowments
  • The stock market
  • Unit Trusts
  • Cash
  • Collectibles
  • Off-shore investments
  • Debentures
25
Q

Debentures

A

Loan to a company

26
Q

Capital Gains Tax

A

Comes in when an asset is disposed of. Either make a loss or a gain, is the difference between buying and selling

Business Studies (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions