The Fundamentals of Investing

Charged for the use of the property or land

Investments are secure.

The rise in the general level of prices

Individual's general approach to investment risk

Real estate includes ownership of residential, commerical property or land & its rights

If a company you own stock in makes a profit, you may recieve part of the profit as a retrun

Only completes orders to buy and sell investments

Mutual funds include stocks, bonds, real estate, and/or speculative investments

The profit or income generated by saving and investing

Inflation Risk is the danger that money will be worth as much in the future as it is today

Mutual fund that is made to reduce fees by investing inthe stocks & bonds that make up an index

When investing, you have a risk of loss.

A share of ownership in a company

An index is a group of similar stocks and bonds

Selling stocks for a market price higeher than what was paid will result in what type of return

The chance of loss from an event that cannot be entirely controlled

Porfolio diversification creates risk reduction by spreading $$ among wide array of investments

Bond is a form of lending to a company or the government in retrun for a fixed interest rate

$2,200 in a money market, after 1 year there is a retrun of $110. Whats the rate of retrun?

Provides an organized, central serivce to buy & sell stocks, bonds, other other investments

Brokerage firms facilitates the buying and selling of investments from a stock exchange

Specified time in the future when the principal amount of the bond is repaid to the bondholder

The total return expressed as a percentage of the amount of money saved

Possibility an investment will fail to pay the expected return or fail to pay a return at all

What are investments?

Offer investment transactions as well as investment adivce and a financial advisor

Speculative Investments have potential for significiant fluctuations in return in a short time

Investments are less liquid than savings tools

An example of a speculative investment is....

The rate of retrun earned on an investment should be higher than the rate of inflation

The owner of a stock is called...(read answers carefully)

Investment philosopies are genereally divided into three main categories