Investments
When you buy one of these, you purchase a share of ownership in a corporation.
What is stocks?
This describes an investor’s ability and willingness to take risks based on things like time horizon and personality.
What is risk tolerance?
This type of risk comes from events that affect entire economies, such as a recession or pandemic.
What is economic risk?
This kind of investment is a form of publicly issued long-term debt used by corporations and governments.
What is a bond?
These include factors like taxes, time available, liquidity needs, and legal restrictions.
What are constraints?
This term refers to the return investors predict based on an investment’s average past performance.
what is expected return?
This type of market is used to invest surplus cash for the longer term and involves “selling liquidity.”
What are the capital markets?
This kind of statement helps individuals outline their investment goals, risk tolerance, and constraints.
What is an investment policy statement?
This is the annual percentage earned on the original value of an investment.
What is rate of return?