Savings
An account that offers higher interest rates than traditional savings accounts.
What is a high-yield savings account?
Digital money that exists only in digital space.
What is Cryptocurrency?
Spreading Investments across various global markets
What is Geographical Diversification?
The potential for losses in an investment due to fluctuations in market prices, interest rates, exchange rates, and commodity values.
What is market risk?
Interest earned on the initial amount plus any interest already earned.
What is Compound Interest?
Lending money to a bank
What is a CD?
Requires a continuous effort to earn
What is active income?
The potential for adverse effects on earnings or capital caused by unexpected fluctuations in interest rates.
What is interest rate risk?
Everyday people who buy or sell shares
Who are individual investors?
A portion of savings set aside for unexpected expenses
What is an emergency fund?
Lending Money to the Government
What are T-Bills?
Spreading your investments across various assets so that if one goes down, another might go up and balance
What is diversification?
Cryptocurrency
What is high risk?
Individuals that help people trade stocks
Who are stockbrokers?
To insure depositors' money in case a bank fails.
What is the role of the FDIC?
Investments in raw goods
What are commodities
Investment in different types of assets
What is Asset Diversification?
The potential for a business or institution to be unable to meet its short-term financial obligations becuase it lacks sufficient cash or easily convertible assets.
What is liquidity risk?
Company performance, economic indicators, investor sentiment, and global events.
What can influence the price of stock?
Saving money regulary.
What is the most important first step in building wealth?
A bank offered account that pays monthly interest on the money you deposit.
What is a savings account?
The amount of risk an investor is willing to take
What is personal risk tolerance?
Even if your investment shows a positive return, that return might be smaller than the rate of inflation, resulting in a negative real return.
What is inflationary risk?
Typically wealthy individuals who meet the legal criteria to invest
What are angel investors