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29 Cards in this Set
- Front
- Back
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Portfolio |
Accumulation of assets owned by an investors designed to transfer purchasing power to the future. Stores of Value |
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Investment |
Acquisition of an asset such as a stock or bond |
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Secondary Market |
Market for selling or buying previously issued securities. (NYSE, Nasdaq etc.) |
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Primary Market |
Initial sale of securities |
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Value |
What something is worth or what it will be worth |
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Valuation |
Process of determining the current worth of asset |
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Return |
Sum of income + capital gains of investment asset |
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Income |
Flow of money produce by asset |
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Capital Gain |
When an asset increases its value (ex. stock) |
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Rate of Return |
annual % of return of investment |
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Risk |
Possibility of loss; uncertainty of future returns |
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Speculation |
Investment that offers potential of large returns but is also very risky |
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Marketability |
How easy can an asset be sold |
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Liquidity |
How easy can an asset be turn into cash |
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Systematic Risk |
Fluctuation in security prices; Market risk |
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Unsystematic Risk |
Risk associated with an individual event, which affect a particular security. |
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Business Risk |
Risk associated to the type of business |
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Financial Risk |
Risk associated with firm's sources of financing |
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Market Risk |
Systematic Risk; Risk associated with the tendency of a stock's price to fluctuate with the market |
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Interest Rate Risk |
Risk associated with change in interest rates; possibility of loss from increases in interest rates |
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Reinvestment Rate Risk |
Risk associated with reinvesting at a lower rate than was initially earned |
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Purchasing Power Risk |
Risk that future inflation will reduce purchasing power of assets and income |
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Exchange Rate Risk |
Uncertainty associated with changes in the value of foreign money |
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Investment Advisor |
Person or group that makes investment recommendations or conducts securities analysis in return for a fee. [NASAA] www.nasaa.org |
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Chartered Alternative Investment Analyst (CAIA) |
"Alternative Investments" dealing with asset classes and investments other than standard equity or fixed income products. ex.hedge funds, private equity, real assets,commodities etc. www.caia.org |
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Chartered Financial Analyst (CFA) |
Investment management, financial analysis, stocks, bonds, and derivatives provides a general knowledge of other areas of finance. www.cfainstitute.org |
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Certified Financial Planner (CFP) |
knowledgable individual is the areas of financial planning, taxes, insurance, estate planning and retirement www.cfp.net |
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Chartered Financial Consultant (ChFC)
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Knowledgeable in financial matters and to have the ability to provide sound advice www.chfc-clu.com |
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Certification in Performance Management (CIPM) |
Professionals who know how to measure, present and explain complicated investment performance numbers. |
