Definitions
What does GIC mean?
Guaranteed Income Certificate
Factor of return:
The profit of return from an investment.
List 3 types of investments:
Cash, Bonds, Mutual Funds, ETFs, and/or Stocks.
A _____ is a distribution of money, stocks, or other property that a corporation pays to share holders.
Dividen
When was the Great Depression?
1930s.
What is investing?
Committing money in order to earn a financial return.
Factor of risk:
Chance that the value of an investment will decrease.
List 3 companies that have stocks.
Trick question, all companies have stocks.
Stock holders are _____ and share in success (or failures) of the company.
Owners
Do stocks have low or high risk?
High risk.
What does "Gain on Stock Price" mean?
Sell it for more than you paid.
Which is better for earning more money: Redeemable GICs, or a Non-Redeemable GICs?
Non-Redeemable GIC
Investments rated lowest to highest risk:
Cash, Bonds, Mutual Funds, ETFs, and Stocks.
*In this order.*
The _____ of share _____ wish to buy at exactly that same time.
Demand, and Investors.
ETF meaning:
Exchanged Trading Funds.
What is the definition for "Volatility?"
The tendency for something to have big swings/changes
Factor of time:
The more time money is in stocks, the easier it is for it to rise or fall.
List 3 unordinary and risky forms of investments:
Antiques and Collectables, Gold/Silver, Coins and Stamps, Real Estate, Cryptocurrencies.
Famous stock market _____ have lead to the loss of billions of dollars and wealth destruction on a massive scale because people think they should when when the price is _____ instead of _____ more.
Crashes, Down, and Buying.
Why shouldn't you sell your stocks when they are lower than you bought them at?
Because the price will go back up.
What is a stock market?
A market for the trading of company stocks/shares at an agreed price.
Factor of liquidity:
The ability to get your money out of an investment in cash, without loss of value.
List 3 safe forms of investing:
Savings Accounts, Government Savings Bonds, Canadian Treasury Bills, GICs, and/or Term Deposits.
S&P 500 has enjoyed an annual compound growth rate of _____ over the last 40 years.
+11.8%
Liquidity of Mutual Funds:
Can sell your stock at anytime, but you may lose money if it is below the price you paid for.