Property
What is income earnt from property called?
Rent
What is a share?
A unit of ownership in a company on the stock market
What is another name for a contractor?
Freelancer
What does ETF stand for?
Exchange Traded Fund
What is the difference between a good and a service?
A good is tangible and a service is an action that is intangible
What is the profit from property value when it increases over time called?
Capital growth
You should buy a stock when the price is _______, and sell when the price is _______
low, high
Identify two participants in the workforce
employees, government, employers, unions, contractors
What are two benefits of investing in an ETF?
Diversifying risk, low cost, easy access, transparency
Define supply or demand
Supply is the amount of stock/asset that is available and demand is the level of consumer desire/want
Identify two advantages of investing in property
Could have:
Capital growth
Rental income
Tax deductions
Property is a tangible asset
How can you research what companies to invest in?
Through accessing news, articles about the company and their previous 5 year average performance
Why would a business hire a contractor instead of a permanent employee?
specialist knowledge and more financially sensible for project work or one-off projects
What is the ASX 200?
The top 200 companies listed of the Australian stock exchange
What is this: A tool used to plan for and track income and expenses
A budget
Identify two cons of investing in property
High entry costs, ongoing maintenance, risk of bad tenants, not easily sold (illiquid)
Identify two reasons why share prices change
Could have: Company value increases, more investors invest, supply and demand, reputational damage etc.
What is industrial action?
a failure or refusal by employees to attend for work or a failure or refusal to perform any work at all by employees who attend for work
What is a sector?
A general segment of the economy that contains similar industries.
Identify two advantages and two disadvantages of online shopping for the consumer
Advantages: convenience, ease of comparison shopping, can be cheaper
Disadvantages: Private data is entered online, shipping/delivery fees, exchange rate conversion if shopping overseas, can't try on clothes/accessories, not supporting local businesses
What is liquidity in finance?
The ability to turn something (like an asset) into cash, i.e. make something liquid.
What does KPI stand for?
Key Performance Indicator - you can use this to predict how well a stock is going to do, based on whether they have met their previous KPI's
Name of Australia's national workplace relations tribunal and the independent regulator of registered organisations
Fair Work Commission
What’s one ETF you’d consider investing in and why
Answers will vary - teacher decision on accuracy
What is an interest rate?
the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding