Economics Chapter 2 Vocabulary Terms
Help!
|
|
||||
|---|---|---|---|---|---|
| Aggressive Growth Stock Mutual Fund | mutual fund that seeks to provide max long-term capital growth from stocks of primarily smaller companies or narrow market segments; small cap fund
🗑
|
||||
| annuities | a type of investment where the money is guaranteed by an insurance company; a savings plan through an insurance company
🗑
|
||||
| bond | a debt instrument where a company owes you money the rate of return on these is low
🗑
|
||||
| CD | Certificate of Deposit usually at a bank; this is just a savings account with a little higher interest rate because you are agreeing to tie up your money for a little while
🗑
|
||||
| commodity | food, metal, or another fixed physical substance that investors buy or sell, usually via futures contracts
🗑
|
||||
| diversification | to spread around, thus lowering one’s risk. Spreading your money among different classes of financial assets and among the securities of many issuers
🗑
|
||||
| dividend | stock profits that are paid out to shareholders
🗑
|
||||
| fixed annuity | a type of annuity that guarantees a certain rate of return – for example 6%; these are usually low and are not recommended for long-term wealth building
🗑
|
||||
| futures | term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange
🗑
|
||||
| investments | where one would put their money for long-term growth (suggested min. of 5 years)
🗑
|
||||
| Growth Stock Mutual Fund | funds that buy stocks in companies that are medium in size; they have grown, but are still expanding; also called Mid-cap funds
🗑
|
||||
| large-cap fund | type of funds that contain large, well established companies
🗑
|
||||
| liquidity | the availability of money; as there is more liquidity, there is typically less return. The quality of as asset that permits it to be converted quickly to cash without loss of value
🗑
|
||||
| mid-cap fund | a mutual fund containing a group of medium-sized companies that are growing
🗑
|
||||
| money market | utilized for borrowing and lending money for three years or less. A mutual fund that seeks to maintain a stable share price and to earn current income by investing in interest-bearing instruments with short-term (usually 90 days or less) maturities
🗑
|
||||
| mutual fund | pools of money that are managed by an investment company; they offer investors a variety of goals, depending on the fund and its investment charter
🗑
|
||||
| portfolio | a list of your investments
🗑
|
||||
| rental real estate | buying real estate to rent out as an investment; make sure you have plenty of cash before doing this
🗑
|
||||
| risk | degree of uncertainty of return on an asset; in business, the likelihood of loss of reduced profit
🗑
|
||||
| risk return ratio | relationship of substantial reward corresponding to the amount of risk taken
🗑
|
||||
| savings account | accounts at financial institutions that allow regular deposits and withdrawals; the minimum required deposit fees charged, and interest rate paid varies among providers
🗑
|
||||
| share | a piece of ownership in a company stock or mutual fund
🗑
|
||||
| single stock | buying ownership in one company – the problem with single stocks is you are not diversified; there is a high degree of risk in single stocks
🗑
|
||||
| small-cap fund | a mutual fund that invests in companies whose market value is less than about $1 billion
🗑
|
||||
| speculative | purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss
🗑
|
||||
| track record | the past history of something; with investments, check at least the 5 or 10 year track record
🗑
|
||||
| variable annuity | an annuity that has a varying rate of return based on the mutual funds you have invested in; this is better than the fixed annuity
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
NickPriceEllis
Popular Economics sets