Ch 3: Investment Securities/Opportunities

What is the relationship between risk and return in investments?

Which investment option is typically described as low-risk with fixed returns?

What is a primary risk associated with investing in mutual funds or stokvels?

How do managed portfolios help reduce investment risk?

What type of investment provides high risk and potential for substantial returns by investing in startups?

Which investment is typically known for providing lower returns but is considered secure?

What should investors consider when choosing their investment options?

What is a common characteristic of endowments or retirement annuities?

What type of investments provides a way for individuals and businesses to raise capital through the buying and selling of financial instruments?

Which type of share generally provides a fixed dividend and has preference over ordinary shares during liquidation?

What is a key characteristic of compound interest compared to simple interest?

When making investment decisions, which of the following factors is NOT typically considered?

What type of investment scheme allows investors to pool their resources into a single fund managed by professionals?

Which of the following reflects a key feature of government retail bonds?

In investment terminology, what does ROI stand for?

Which investment option is known for being low-risk and suitable for individuals wanting to preserve capital?

What is a potential disadvantage of investing in mutual funds or stokvels?

What characteristic distinguishes venture capital from other investment options?

Which investment option is described as having slightly higher returns than a regular savings account?

When should the choice of investment align with an investor's financial goals?

Which of the following best describes the nature of government bonds?

How do managed portfolios help reduce the risk associated with investments?

Which kind of investment option is primarily considered a long-term strategy for building wealth?

What factor is essential for investors to consider when navigating financial markets?

What type of investment allows individuals to buy shares and receive dividends?

Which of the following is NOT a type of share mentioned in the content?

Which investment option is characterized by pooling funds managed by professionals?

Compound interest differs from simple interest in that it accounts for:

What is a primary consideration when assessing the risk of an investment?

Which of these is considered a safe, low-risk investment suitable for individuals seeking to preserve capital?

The manner in which businesses raise capital through buying and selling financial instruments takes place on which exchange?

Dividends and interest from investments are examples of:

What encompasses a broad spectrum of opportunities beyond stocks and bonds?

What is the characteristic feature of unit trusts?

Which of the following is a distinguishing factor of compound interest over simple interest?

Investment decisions should be informed by various factors. Which of the following is NOT typically a consideration?

What distinguishes preference shares from ordinary shares?

Which factor affects the return on investment (ROI) in a significant way?

What is a key characteristic of government retail bonds?

What is an example of an investment that typically allows businesses to raise capital?

What is a primary advantage of managed portfolios?

Which investment option typically involves a collective investment structure?

What characteristic is shared by both debentures and government bonds?

Which factor is crucial for determining the appropriate investment strategy?

Which investment type is described as providing lower returns but being secure?

What do venture capital investments primarily aim to achieve?

Which of these is a notable risk associated with mutual funds or stokvels?

What is a common trait of endowments and retirement annuities?

Which investment type is likely to have the lowest liquidity?

What is a primary benefit of venture capital investments over traditional investments?

Which investment option is primarily geared towards long-term wealth accumulation?

What is a significant disadvantage associated with investing in mutual funds?

Which investment type offers fixed interest but could entail issuer-related risks?

What common trait do managed portfolios and mutual funds share?

Which characteristic is often associated with government bonds compared to corporate debentures?

What fundamental consideration should investors assess regarding different investment types?

What distinguishes preference shares from ordinary shares in terms of dividend rights?

Which of the following investment options typically offers the highest potential for returns?

Which factor is least likely to affect the liquidity of an investment?

What type of interest leads to returns that grow exponentially over time due to interest being calculated on previously accrued interest?

Which option describes a key characteristic of unit trusts?

When evaluating an investment's return on investment (ROI), which aspect is generally most significant?

Which characteristic is common to both equities and bonds in the context of investment?

Which of the following best defines what venture capital primarily focuses on?