ABA Ch 16

How would you begin investing in these products?

Speak with a broker at a brokerage firm

How can you own a corporation?

by buying stock in the company

investments have risk associated with them. The riskier the investment, the higher the rate of retuen it usually takes to attract investors. Do you remember what this concept is called?

risk-return tradeoff

When we speak of equity, what does that generally mean in the world of finance?

to own something

with low-risk tolerance in mind, which investments from this list should you invest in?

-United States treasury bonds -Certificates of deposit

What is the cost when someone borrows money from someone else?

interest

Do you remember the two major types of financing?

debt financing and equity financing.

In order to increase your chance of a better return, you would have to

invest in products with higher levels of risk