Types of Investments
Mutual funds that are properly _________ will have investment dollars spread equally among different classes of financial assets.
diversified
The best time to start investing.
now
The degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
risk
When you do research before investing in stocks, are you making the risk of investment higher or lower?
Lower
These are a debt instrument where the issuer owes you money. They make regular interest payments and pay back the face value at a later date. The risk is lower than stocks.
Bond
What type of investment is done with a group of investors that pool their money together?
mutual fund
Investing sooner means you can _____________ sooner.
retire
a piece of ownership in a company or mutual fund.
What is a share
True or False? Information, even if not true, can cause a stock's value to drop.
True
This investment is a piece of property owned by a person who rents it out to another.
rental property
stock
What type of money should you never use to invest?
borrowed
Type of investment you do through your employer, and the employer usually matches your contribution by a certain percentage
401K
Would the risk be low or high to invest all your money in only one sector of stocks?
High
As the value of stocks go up, you may be paid that profit in cash or more stocks. This is called stock ________.
dividends
Private pool of money from wealthy individuals/ institutions that is managed by professionals using complex and often risky strategies to maximize profits
Hedge fund
One of the three major stock exchanges in the U.S.
NASDAQ, NYSE, AMEX
When you sell your stocks at a higher price than what you paid for them, you make a ___________
profit
Type of risky investment where you purchase a home that needs improvement with the intent of immediately reselling the home after you make the improvements.
House Flipping
The 7 largest companies in the world are referred as what?
The Magnificent 7
Type of investment that does not give you part ownership in a company, but instead loans the company your money in return for payback with interest.
bond
This is the best place to keep your emergency fund.
savings account
Term that means to spread around one’s investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk.
Diversification
Often trading for less than $5 per share, these highly volatile stocks are known for lacking liquidity and having a high risk of total loss
Penny stocks
A list of your collection of investments (holdings).
Portfolio