Mathematics Flashcards

1
Q

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

A

Stock

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2
Q

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

A

Bonds

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3
Q

Include money deposited into bank accounts, certificates of deposit and US treasury bills. Cash investments generally earn interest

A

Cash investment

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4
Q

Which means buying individual investment on her own often through a broker

A

a person can invest directly

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5
Q

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

A person can invest indirectly

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6
Q

Is how easily money can be withdrawn from an investment

A

An investment liquidity

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7
Q

Is the chance of losing the principal invested

A

An investment risk

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8
Q

Is the total or annual amount of money that is expected to be earned on an investment

A

An investment return

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9
Q

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

A

Balancing risk

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