Asset Classes
Partial ownership of a company that is purchased through shares.
What are stocks?
This term describes the chance that an investment’s value will decrease.
What is risk?
This is the most common reason people start investing, often to ensure a comfortable life after their career.
What is retirement?
The amount of money you are willing to lose in the stock market is your risk ______.
What is risk tolerance?
A loan given to the corporation by the investor which is given a fixed interest rate that the investor is paid until the maturity date of the loan. At the maturity date, the investor is paid back the full amount of the original loan.
Higher potential returns typically come with this level of risk.
What is high risk?
Many people invest to grow their money faster than this, which reduces purchasing power over time.
What is inflation?
A professional fund manager pools money from multiple investors to strategically purchase a diversified portfolio of stocks, bonds, etc. across different sectors, industries, and companies.
What are mutual funds?
Low-risk investments like savings accounts and CDs are often referred to as this.
What is a safe investment?
Investing can help achieve big milestones, such as buying a house or paying for this level of education.
What is college?
This type of company is always well established in its respective industry, and is assumed to avoid bankruptcy.
What is a blue chip company?
A collection of different assets (shares, bonds, etc.) that an investor can buy a share in. This means the investor is investing in all the assets included in the ___.
This phrase refers to spreading your money across different types of investments to lower risk.
What is diversification?
A long-term investment goal for some is to leave this for their children or family after they pass away.
What is an inheritance?
This type of risk is caused by a company's internal business choices, and affects the safety and demand of the stock.
What is non-market risk?