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Cons. Ed. Ch. 11
| Question | Answer |
|---|---|
| Discount Bond | a bond purchased for less than its maturity value |
| Annuity | a contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement |
| Diversification | an investment strategy for spreading risk among different types of investments |
| Investing | the use of savings to earn a financial return |
| Inflation | a rise in the general level of prices |
| Risk | the chance that an investment's value will decrease |
| Annual Report | an SEC-required summary of a corporation's financial results for the year and prospects for the future |
| Stock | a unit of ownership in a corporation |
| Financial Advisers | Professional investment planners who are trained to give investment advice |
| Bond | an investment that represents the debt of a company or a government |
| Mutual Funds | a profesionally managed group of investments brought using a pool of money from many investors |
| Futures | contracts to buy and sell commodities or stocks for a specified price on a specified date in the future |
| Option | the right, but not the obligation, to buy or sell a commodity or stock for a specialized price within a specified time period |
| Penny Stocks | low-priced stocks of small companies that have no track record |
| Rule of 72 | technique for estimating the number of years required to double your money at a given rate of return |
Created by:
LBird
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