Personal Finance Ch 18
Mortgage REITs
REITs that invest in mortgage loans that help to finance the development of properties
Equity REITs
REITs that invest money directly in properties
Portfolio
a set of multiple investments in different assets
Stock Option
an option to purchase or sell stocks under specified conditions
Call Option
provides the right to purchase 100 shares of a specific stock at a specified price by a specific expiration date
Put Option
provides the right to sell 100 shares of a specified stock at a specific price by a specified expiration date
Covered Call Strategy
selling call options on stock that you own
Exercise (Strike) Price
the price at which a stock option is exercised
Premium
the price that you pay when purchasing a stock option
Asset Allocation
the process of allocation money across financial assets (such as stocks, bonds, and mutual funds) with the objective of achieving a desired return while maintaining risk at a tolerable level
Real Estate Investment Trusts (REITs)
trusts that pool investments from individuals and use the proceeds to invest in real estate
