Types of Investments 1
Shares or units of ownership in a corporation.
Stocks
Objects or items collected by someone who has an interest in the sport, activity, etc., where the person hopes to resell the items at a profit.
Collectibles
A document outlining the financial status of a business.
Annual Report
Employer offered tax deferred retirement plan.
401(K)
How much of sales the company retains as profit.
Profitability
Lending investments in which individuals lend money to a bank to earn interest.
Savings Account
Lending investments in which individuals lend money to a government, municipality, or corporation to earn a set rate of interest for a specified period of time.
Bond
A financial statement that captures the financial condition of the business at that particular moment.
Balance Sheet
Tax-Deferred retirement plans, usually for people who are not covered by an employer-sponsored plan.
Individual Retirement Accounts (IRAs)
A measure of how much risk you're willing to accept in exchange for potentially higher returns.
Risk Tolerance
Lending investments in which individuals lend money to a bank to earn a set rate of interest for a specified period of time.
Certificate of Deposit (CD)
Investments in which lenders allow borrowers to use their money during a period of time for a specified fee or rate of interest.
Lending Investment
A summary of a business's income and expenses over a period of time.
Income Statement
Retirement plan where contributions are made with after-tax dollars. Will not pay taxes upon distribution.
Roth IRA
The percentage of sales that is left after subtracting the direct cost of producing the goods.
Gross Profit Margin
Ownership investments in which a variety of stocks from different corporations or agencies are combined into one investment.
Mutual Fund
Money Market Account
A financial summary that states how much money has flowed into and out of a business.
Cash Flow Statement
How much profit goes to each share of common stock.
Earnings Per Share (EPS)
What a company is worth from an accounting point of view.
Book Value
Investments in which individuals purchase a portion or all of an item.
Ownership Investments
The legal owning or lending agreements between individuals, businesses, or governments.
Securities
Summaries of accounting information; usually the Balance Sheet, Income Statement, and Cash Flow Statement.
Financial Statements
Measures management's skill in turning your investment into profit.
Return on Equity (ROE)
What people are willing to pay for a stock.
Market Value