Personal Finance Key Terms Ch. 8
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
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| diversification | the practice of dividing the money a person invests between several different types of investments in order to lower risk
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| investing | the process of setting money aside to increase wealth over time for long-term financial goals such as retirement
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| investment | account or arrangement in which a person puts his/her money for long-term growth; invested money should not be used for a suggested minimum of five years
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| liquidity | quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money
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| portfolio | a list of your investments
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| risk | degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit
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| risk-return ratio | relationship of substantial reward compared to the amount of risk taken
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| share | piece of ownership in a company, mutual fund or other investment
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| stocks | securities that represent part ownership or equity in a corporation
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| tax-favored dollars | money that is invested, either tax deferred or tax free, within a retirement plan
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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.
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Created by:
Ms.Sala
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