U5 Saving Investing L3 Fund. of Investing Flashcards

Increase vocabulary skills through repetition to increase comprehension of curriculum

1
Q

form of lending to a company or government

A

bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

facilitates buying and selling of investments from stock exchange

A

brokerage firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

completes orders to buy and sell investments

A

discount brokerage firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

share of profits distributed in cash

A

dividend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

trained professional that helps people make investing decisions

A

financial advisor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

offer investment transactions as well as investment advice and a financial advisor

A

full-service brokerage firm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

group of similar stocks and bonds

A

index

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

mutual fund that was designed to reduce fees by investing in the stocks and bonds that make up an index

A

index fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

danger that money won’t be worth as much in the future as it is today

A

inflation risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

rise in the general level of prices

A

inflation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

A

investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

an individual’s general approach to investment risk

A

investment philosophy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

possibility that an investment will fail to pay the expected return or fail to pay a return at all

A

investment risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

current price that a buyer is willing to pay

A

market price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

specified time in the future when the principal amount of the bond is repaid to bondholder

A

maturity date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

created when a company combines the funds of many different investors and then invest that money in a diversified portfolio of investments

A

mutual fund

17
Q

unearned income received from the sale of an asset above its purchase price

A

capital gain

18
Q

reduces risk by spreading money among a wide array of investments

A

portfolio diversification

19
Q

total return on an investment expressed as a percentage of the amount of money saved

A

rate of return

20
Q

fee charged for the use of property or land

A

rent

21
Q

profit or income generated by saving and investing

A

return

22
Q

chance of loss from an event that cannot be entirely controlled

A

risk

23
Q

have the potential for significant fluctuations in return over a short period of time

A

speculative investment

24
Q

share of ownership in a company

A

stock

25
Q

owner of a stock

A

stockholder or shareholder

26
Q

an organized, central service to buy and sell stocks, bonds and other investments that are traded

A

stock exchange

27
Q

reduce, defer or adjust the current year tax liability

A

tax-advantaged investments