10 Questions
What is the main goal of investing?
To achieve long-term financial goals
What is a portfolio?
A collection of different investments
What does liquidity refer to in investments?
The ability to buy and sell quickly
Which type of investment includes real assets like land and buildings?
Real property
What is the difference between direct and indirect investments?
Direct investments involve acquiring ownership directly, while indirect investments involve acquiring ownership through a professional manager
What is the main difference between Debt and Equity securities?
Debt securities provide interest income and repayment of loan, while Equity securities provide ongoing ownership in a business.
What is the primary characteristic of High-risk investments?
They are less predictable.
What is the main distinction between Short-Term and Long-Term investments?
Short-Term investments have maturities of longer than one year, while Long-Term investments have maturities of one year or less.
How do Financial Institutions participate in the investment process?
By pooling the resources of households and making loans or investing in securities.
Who are considered Institutional Investors?
Investment professionals who manage other people's money.
Explore the fundamental concepts of investments including the definition of investment, portfolio, and return. Learn about the goal of investing to achieve long-term financial objectives.
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