Lesson 33 - unit 7 Flashcards
What is the simplest form of investment?
A loan.
What is a bond?
Certificates of indebtedness.
What are the 2 most common bonds?
Corporate bonds and government bonds.
What does a person buy when he buys a share of stock?
A small part of the ownership of a company.
Who gets paid first: bandholders or stockholders?
Bondholders
What are mutual funds?
Investment companies that offer shares to the public and invests the money in a range of other companies.
What is a hedge fund?
It takes risks by buying and selling securities in anticipation of what the fund manager thinks the securities are going to be worth in the future.
What is leverage?
A high risk form of investing that allows people to buy securities on credit by paying a small amount of money.
What are capital gains?
The gain or increase in value of capital assets such as stocks and property.
