Investments Flashcards
When companies and other entities engage in sound business investment practices, it typically results in economic growth
Economic Investments
most well-known and simple type of investment
Stocks
An investment bank provides a variety of services to individuals and
businesses, including many services that are designed to assist individuals and
businesses in the process of increasing their wealth.
Investment Vehicles
a pool of many investors’ money that is invested broadly in a number of companies.
Mutual Funds
Generally, this is a business or a government entity.
Bonds
You give a bank a certain amount of money for a predetermined amount of time. When that time period is over, you get your principal back, plus a predetermined amount of interest. The longer the loan period, the higher your interest rate.
Certificates of Deposit
a very low-risk investment.
Certificates of Deposit
similar to mutual funds in that they are a collection of investments that tracks a market index.
Exchange-Traded Funds
4 ways to reduce your investment risk:
- Have a diversified portfolio of investments
- Know your investment goals
- Keep a close eye on your investments
- Watch out for scammers
is an asset or item acquired with the goal of generating income or
appreciation.
Investment
Types of investment:
Economic Investments
Investment Vehicles
Stocks
Bonds
Mutual Funds
Exchange-Traded Funds
Certificates of Deposit
Retirement Plans
Annuities
Cryptocurrencies
Commodities