Investments

Question 1

Asset classes ?

Answer 1

CASH- low risk.
PROPERTY - moderate risk to high risk
BONDS - moderate risk
EQUITIES - high risk

Question 2

Investment strategies

Answer 2

Conservative
Defensive
Balanced
Growth

Question 3

Stock market terminology

Answer 3

Bull market - positive
Bear market- negative
Spread-asking price and bid price
Rights offer- offer to existing share holders to have first option

Question 4

Strategies to limit losses

Answer 4

STOP LOSS STRATEGY-specific predetermined price at which you sell a particular share in order to stop the loss
REBALANCING - adjust your portfolio elements to get lit back to a point where half is invested in equities and half in bonds and cash

Question 5

Shares

Answer 5

Blue chip shares- most solid companies
Green chip shares- environmental issues met
Black chip shares- companies that are BEE/ BBBEE complaint

Question 6

Investments ?

Answer 6

Takes place when money is saved in order to make it grow
The money that is saved is known as capital contribution
Therefore investment is the creation of more money through the use of capital