Definitions
What is investing?
committing money to earn financial return.
When investing you want your risk to be____ and your return to be ____
Low, High.
What is the MOST important factor when choosing an investment?
Time.
What is a Stock?
A share of ownership of a company.
What is a GIC?
Guaranteed Investment Certificate
What is the definition of Risk?
The chance that the value of an investment will DECREASE
A ___ is a share of ownership of the company
Stock
List 2 other kinds of investments.
Coins and stamps, Antiques and collectables.
What is a stockholder?
An owner of a stock. They share in the success and failure of the company
What is volatility?
The tendency to have big swings ( in performance, emotion, etc)
What is the definition of Return?
The profit of Return from an investment
The___ is the number of shares offered for sale at any one moment.
supply
Name 5 kinds of investments.
Stocks, Bonds, ETF's, Mutual Funds, Cash equivalents, real estate, REIT's, Commodities.
What is the definition of "gain" on a stock price?
Sell it for more than you paid.
What is a creditor?
Someone/something money is owed to.
What is the definition of Liquidity?
The ability to get your money out of an investment in cash without loss of value.
An ETF is a ___ ___ ___
Exchange traded Fund.
What are 3 safe investments?
Savings accounts, Government Saving Bonds, Canadian treasury bills.
What is the stock market?
A market for the trading of company stock at an agreed upon price.
What is the reason for stock market crashes?
Due to panic and investing public loss of confidence. (based mostly on emotion)
What is a Dividend?
A distribution of money, stocks, or other property, that a corporation pays to shareholders
A ___ ___ has the most fees/ charges out of all investment types
Mutual Fund.
Why are stocks an attractive investment?
Because the possible return is higher than other investment types.
What is the stock market crash?
A sharp dip in share prices of equalities listed on the stock exchanges.
What is the average interest rate of a 1 year, non-redeemable GIC?
4.5%