Types of Investments
What type of investment lets you purchase a portion of a corporation?
stock
What is the name of the street that the NYSE is located?
Wall St
The degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit.
risk
When you reduce risk what else do you usually reduce?
Return
Type of investment you buy in a dollar amount from a bank for a period of time. (Give full name)
Certificate of Deposit
What type of investment is done with a group of investors that pool their money together?
mutual fund
Investing sooner means you can _____________ sooner.
retire
Term that means to spread around one’s investment dollars among several different classes of financial assets.
diversification
Which has more risk?
Corporate or Government Bonds?
stocks
A derivative contract agreement to buy or sell an underlying asset at a future price.
rental property
These are a debt instrument where the issuer (usually a government or company) 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
What do we call someone who expects there to be a downturn in the market?
bear/bearish
Type of investment you do through your employer, and the employer usually matches your contribution by a certain percentage
401K
Buying on ____ means using borrowed money (usually a loan from a bank) to purchase investments.
Margin
As the value of stocks go up, you may be paid that profit in cash or more stocks. This is called stock ________.
dividends
Name this class of investments, examples include: swaps, puts, and calls
Derivatives
The CME is a stock exchange that deals in derivatives and options. What is its full name?
Chicago Mercantile Exchange
Greek letter that denotes an investment strategy/device's ability to beat the market.
Alpha
Liquidity
Unlimited (ur cooked)
Physical products once can invest in. Tend to move in the opposite direction of normal investments such as stocks.
Commodities
The most expensive stock on the major US stock exchanges.
savings account
The 10-yr interest rate paid on a government Treasury bond is used as what important metric to investors?
Risk-Free Rate
Greek letter than denotes the covariance between the investment's price movement and the market's movement
Beta
Theta decay