Key terms: Flashcards
Define ‘Define’
State meaning and identify essential qualities
Define ‘Outline’
Define Describe:
Define ‘Discuss’
Define ‘Explain’
Define ‘Recommend’
Define ‘Distinguish’
What are superannuation returns?
ROI
What are cash holdings?
Money that a person or company keeps available to spend rather than investing
What are unlisted holdings?
Unlisted assets are investments that aren’t listed on an exchange. This can include: infrastructure (roads, power grids, and airports)
What is diversification?
Diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common path towards diversification is to reduce risk or volatility by investing in a variety of assets.
What is wage growth?
Wage growth is a rise of wage adjusted for inflations, often expressed in percentage. In macroeconomics, wage growth is one of the main indications to measure economic growth for a long-term since it reflects the consumer’s purchasing power in the economy as well as the level of living standards.
What are fixed and variable costs?
Variable costs may include labour, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.
What is a balanced investment?
A balanced investment style aims to achieve both capital preservation and capital growth. Sometimes referred to as moderate investing, this style looks to balance risk and reward by investing across varying asset classes.
What is a growth investment?
Growth investing is an investment style and strategy that is focused on increasing an investor’s capital, with a lessened focuse on reducing risk exposure.
