Investing
liquidity
quality of an asset that permits it to be converted quickly into cash without loss of value, availability of money
risk-return ratio
relationship of substantial reward compared to the amount of risk taken
stock
represents a piece of ownership in a company
stocks
securities that represent part ownership or equity in a corporation
mutual fund
structured and maintained to match the investment objectives stated in its prospectus
IRA
tax deferred arrangement for individuals with earned income, individual retirement arrangement
diversification
the practice of dividing the money a person invests between several different types of investments in order to lower risk
investing
the process of setting money aside to increase wealth over time for long-term financial goals such as retirement
real estate
you should have lots of cash before investing in this
bond
your return is the fluctuation in price and the interest rate paid
stock
100 shares of walmart
viatical
Buying the beneficiary position on a life insurance policy of someone who is dying
gold
Has a 70 tear track record of 4.1% returns
mutual funds
Pool of money managed by an investment company and invested in multiple companies
real estate
The least liquid of all consumer investments
bond
a debt instrument where the return comes on the interest rate paid on the loan
portfolio
a list of your investments
401k
a retirement savings plan offered by a corporation to its employees, the employee contributes money from his or her gross pay and the money grows tax deferred
certificate of deposit
a six month or one year savings account that pays a little more interest than a regular savings account
investment
account or arrangement in which a person puts his or her money for long-term growth, invested money should not be used for a suggested minimum of five years
commodity
bad investments because they result in price distortions and are highly volatile
risk
degree of uncertainty of return on an asset: in business,the likelihood of loss or profit
day trading
evidence shows that a vast majority of investors lose money on this type of trading
money market account
great for emergency funds due to their liquidity and stability
tax-favored dollars
money that is invested, either tax deferred or tax free, within a retirement plan
real estate
one benefit of this type of investment is your ability to influence its value
share
piece of ownership in a company, mutual fund or other investment
mutual fund
portfolio managers who do lots of research managing the pool
