Types of Investments
Mutual funds that are properly _________ will have investment dollars spread equally among different classes of financial assets.
diversified
The best time to start investing.
now
The degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
risk
The value that a company has in the stock market is called this - the riskiest companies are classified as small or nano
market cap
Type of investment you buy in a dollar amount from a bank for a period of time.
Certificate of Deposit
What type of investment is done with a group of investors that pool their money together?
mutual fund
Which of the following is considered a speculative investment - stocks, bonds, crypotcurrency
cryptocurrency
a piece of ownership in a company or mutual fund.
What is a share
Which has more risk?
Bonds or Stocks
stocks
This type of mutual fund contains stock in companies have the greatest potential for a high rate of return but also have the greatest amount of risk
Growth fund or aggressive growth fund
stock
This term describes a time period where the stock market has gained 20% or more
Bull Market
This measure describes how much money a company is profiting per share that they sell
EPS - earnings per share
Would the risk be low or high to invest all your money in only one type of stock?
High
As the value of stocks go up, you may be paid that profit in cash or more stocks. This is called stock ________.
dividends
A reason investments make you more money for retirement than just having a savings account.
Greater return
One of the three major stock exchanges in the U.S.
NASDAQ, NYSE, AMEX
When you sell your stocks at a higher price than what you paid for them, you make a ___________
profit/capital gain
The interest rate on a bond is called this
Coupon Rate
These are a debt instrument where the issuer owes you money. They make regular interest payments and pay back the face value at a later date. The risk is lower than stocks.
Bonds
Type of investment that does not give you part ownership in a company, but instead loans the company your money in return for payback with interest.
bond
This is the best place to keep your emergency fund.
savings account
Term that means to spread around one’s investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk.
Diversification
True or False? Information, even if not true, can cause a stock's value to drop.
True
A list of your investments
portfolio