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15 Cards in this Set
- Front
- Back
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investing
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the use of savings to earn a financial return.
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inflation
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a rise in the general level of prices and over time reduces purchasing power.
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rule of 72
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a technique for estimation the number of years required to double your moeny at a given rate of return.
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risk
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the chance that an investment's value will decrease.
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diversification
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involves spreading the risk among many types of investments.
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financial adversaries
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professiobal investment planners that are trained to give investment advice based on your goals, age, lifestyle, and other factors.
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annual report
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a summary of a corporation's financial results for the year and prospects for the future.
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bonds
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debt obligations of corporations or state or local governmenrs.
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discount bond
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you buy a bond for less than its maturity value.
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stock
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a unut of ownership in a corporation.
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mutual fund
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shares in a large, professionally managed group of investments.
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annuity
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a contract sold by an insurance company that provides the investor with a series of regular payments, usually after retirement.
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futures
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contracts to buy and sell commodidites or stocks for a specified price on a specified date in the future.
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option
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the right, but not the obligation, to buy or sell a commodity or stock for a specified orice within a specified time period.
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penny stocks
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low-priced stocks of small companies that have no track record.
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