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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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Rule of 72
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A technique for estimating the number of years required to double your money at a given rate of return.
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Risk
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The chance than an investments value will decrease.
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Diversificatioon
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Involves spreading the risk among the many types of investments.
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Financial Advisers
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or certified financial planners (CFPs) trained to gice 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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Are debt obligations of corporations(corporate bonds) or state or local gov't (municipal bonds)
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Discount Bond
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A Series EE savings bond ; you buy it for less than its maturity value.
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Stock
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A unit of ownership in a corporation .
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Mutual Fund
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Buying shares on 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 reg. payments, usurally after retirement.
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Futures
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Contracts to buy and sell commodities 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 now the obigation, to buy or sell a commodity or stock for a specified price within a specified time period.
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Penny Stocks
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Are lowed-priced stocks of small companies that have no track record.
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Inflation
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A rise in the general level of prices.
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