Ch 2 Voc Test Test
Enter the letter for the matching Definition
| A. 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
B. a debt instrument where a company owes you money the rate of return on these is lowC. relationship of substantial reward corresponding to the amount of risk takenD. where one would put their money for long-term growth (suggested min. of 5 years)E. the past history of something; with investments, check at least the 5 or 10 year track recordF. funds that buy stocks in companies that are medium in size; they have grown, but are still expanding; also called Mid-cap funds
G. type of funds that contain large, well established companiesH. 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
I. a list of your investmentsJ. degree of uncertainty of return on an asset; in business, the likelihood of loss of reduced profitK. 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
L. purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss
M. a mutual fund containing a group of medium-sized companies that are growingN. 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
O. to spread around, thus lowering one’s risk. Spreading your money among different classes of financial assets and among the securities of many issuers
P. buying real estate to rent out as an investment; make sure you have plenty of cash before doing this
Q. mutual fund that seeks to provide max long-term capital growth from stocks of primarily smaller companies or narrow market segments; small cap fund |
Type the Term that corresponds to the displayed Definition.
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