Mathematics Flashcards
Gives a person a share of ownership in a company. To get money out of stock, it must be sold. The sale may yield either a gain or a loss depending on how the stock changed with time
Stock
Represent a promise of future cash. They are issued by either a government or corporation. The issuer pays simple interest and promises to pay back the initial investment plus interest at some later date
Bonds
Include money deposited into bank accounts, certificates of deposit and US treasury bills. Cash investments generally earn interest
Cash investment
Which means buying individual investment on her own often through a broker
a person can invest directly
By purchasing shares in a mutual fund, through which a professional fund manager invests the money along with the money of others participating in the fund
A person can invest indirectly
Is how easily money can be withdrawn from an investment
An investment liquidity
Is the chance of losing the principal invested
An investment risk
Is the total or annual amount of money that is expected to be earned on an investment
An investment return
Is of the most difficult tasks of investing. Risking too much might lose someone money, and risking too little may result in little to no return
Balancing risk