Stocks and Bonds
This represents partial ownership in a company
What is a stock
The amount your investment is worth after it has grown.
What is a return?
The higher the potential return, the higher the _____
What is risk?
Who is known as the ¨Oracle of Omaha¨
Who is Warren Buffet?
A fixed income investment representing a loan from an investor to a borrower
What is a bond?
A pool of money from many investors used to buy securities.
What is a mutual fund?
A savings account at a bank is an example of this type of investment.
What is a low-risk investment?
He wrote The Intelligent Investor.
Who is Benjamin Graham?
These stocks pay regular dividends and have stable earnings.
What are blue chip stocks?
The date an option contract expires.
What is the expiration date?
Losing money due to market downturns is an example of this risk.
What is market risk?
Former hedge fund manager and founder of Bridgewater Associaates.
Who is Ray Dalio?
The government sells these to fund public projects
What are treasury bonds?
This measures how much an investment´s price fluctuates.
What is volatility?
This type of risk comes from a single company or industry.
What is specific (/unsystematic risk)?
Known for shorting the housing market in 2008
Who is Michael Burry?
This type of bond can be converted into a predetermined number of shares.
What is a convertible bond?
A common strategy that involves spreading investments across assets.
What is diversification?
A portfolio of stocks and bonds balances _____
What is risk and return?
Created the first index mutual fund.
Who is John Bogle?