PF Ch 2 Savings Word Scramble
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Term | Definition |
Diversification | to spread around one’s investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk. |
Liquidity | : quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money; when there is more liquidity, there is typically less return |
Mutual Fund | pool of money managed by an investment company and invested in multiple companies, bonds, etc.; offers investors a variety of goals depending on the fund and its investment charter |
Risk | degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit |
Risk Return Ratio | relationship of substantial reward in comparison to the amount of risk taken |
Share | piece of ownership in a company or mutual fund |
Created by:
mgarda
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