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9 Cards in this Set

  • Front
  • Back
investment
the act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit.
financial system
the system that allows the transfer of money between savers and borrowers.
financial asset
claim on the property or income of a borrower.
financial intermediary
institution that helps channel funds from savers to borrowers
mutual fund
a find that pools the savings of many individuals and invests that money in a variety of stocks, bonds and other financial assets.
diversification
spreading out investments to reduce risks
portfolio
a collection of financial assets
prospectus
an investment report to potential investors
return
the money an investor receives above and beyond the sum of money initially invested