Real Estate
Real Estate
A piece of physical land and anything built on it.
Stocks
Shares of ownership of a public company.
Commodities
Raw materials and agriculture.
Bonds
Debt of a company or the government.
Options
Contracts to buy or sell a security when it hits a certain price.
The two primary types of real estate.
Commercial and residential.
Stock prices ___ when there is a bull market.
Increase.
Futures
Contracts where the buyer of the contract has the right to sell or buy the underlying commodity.
Interest Rate
The rate at which the issuer of the bond must pay money to the holder of the bond.
Strike price
The price at which an asset can be bought or sold.
REIT
A trust that owns multiple properties and can be invested in.
P/E
When inflation rises, commodity prices often ____
Increase.
Maturity Date
The date at which the issuer of the bond must repay the original amount of money it borrowed from the buyer of the bond.
Call Option
The holder of the contract can buy the asset.
The two methods of making money off of real estate.
Selling the property or renting the property.
Market Capitalization
The total value of all of the company's publicly traded shares.
Specialization
An investing strategy where you focus on one specific commodity to become an expert on it.
Bonds can be issued from ___
Any country.
Premium
The money paid to the seller of an options contract for the right to buy or sell the underlying asset.
1031 Exchange
A tax loophole if a property is sold, the money can be invested into a similar property, thus avoiding taxation.
Value Investing
An investing strategy to buy stocks whose stock prices are lower than their intrinsic value.
Arbitrage
Floating Rate Bonds
Bonds whose interest rate can change periodically.
Covered Call
Strategy where you sell a call option on an asset you own.