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Cons. Ed. Ch. 11

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