Investing Basics and Key Concepts

A rise in the general level of prices.

A technique for estimating the number of years required to double your money at a given rate of return.

<p>A collection of investments.</p> Signup and view all the answers

<p>The chance that an investment's value will decrease.</p> Signup and view all the answers

<p>The spreading of risk among many types of investments.</p> Signup and view all the answers

<p>Investment choices that will be reevaluated within a year or less.</p> Signup and view all the answers

<p>Investment choices that will be held for the long run - five or 10 years, or longer.</p> Signup and view all the answers

<p>Summary of a corporation's financial results for the year and its prospects for the future.</p> Signup and view all the answers

<p>Debt obligations of corporations or state or local governments.</p> Signup and view all the answers

<p>A savings bond purchased for less than the maturity value.</p> Signup and view all the answers

<p>A unit of ownership in a corporation.</p> Signup and view all the answers

<p>The pooling of money from many investors to buy a large selection of securities.</p> Signup and view all the answers

<p>A contract that provides an investor with a series of regular payments, usually after retirement.</p> Signup and view all the answers

<p>Contracts to buy and sell commodities or stocks for a specified price on a specified date in the future.</p> Signup and view all the answers

<p>The right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time.</p> Signup and view all the answers

<p>Low-priced stocks of small companies that have no track record.</p> Signup and view all the answers

<p>Stage 1 of Investing: establishing an account that provides safety of principal.</p> Signup and view all the answers

<p>Stage 2 of Investing: conservative investing with low risk.</p> Signup and view all the answers

<p>Stage 3 of Investing: investing on a regular and planned basis.</p> Signup and view all the answers

<p>Stage 4 of Investing: the careful management of investment alternatives to maximize growth of your portfolio over the next 5-10 years.</p> Signup and view all the answers

<p>Stage 5 of Investing: making bold and high-risk investment choices.</p> Signup and view all the answers

<p>The chance that inflation will rise faster than the return on your investments.</p> Signup and view all the answers

<p>The actions the government might take that would reduce the value of your investment.</p> Signup and view all the answers

<p>Type of risk caused by the business cycle - periods of economic growth and decline.</p> Signup and view all the answers

<p>Unpredictable and uncontrollable risk that is unrelated to market trends.</p> Signup and view all the answers

<p>(Discount bonds) bonds purchased for half the maturity value.</p> Signup and view all the answers

<p>Bonds purchased at face value that offer interest and protect against inflation.</p> Signup and view all the answers

<p>Type of treasury security purchased for a minimum of $100. The maturity date is from a few days to one year.</p> Signup and view all the answers

<p>Type of treasury security purchased for a minimum of $100. The maturity date is 2, 5, or 10 years.</p> Signup and view all the answers

<p>Type of treasury security purchased for a minimum of $100. The maturity date is 30 years. Interest is higher than that of notes or bills because of the longer maturity.</p> Signup and view all the answers