Chapter 11 terms
Terms
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- Investing
- the use of savings to earn a financial return
- Inflation
- a rise in the general level of prices
- Rule of 72
- a technique for estimating the number of years to double your money
- Risk
- the chance that an investment's value will decrease
- Diversification
- which involves spreading risk among many types of investments
- Financial advisers
- professional investment planners
- Annual report
- a summary of a corporations financial results for the year and prospects for the future
- Bonds
- debt obligations of corporations or state or local governments
- Discount bonds
- a bond you buy for less than the maturity value
- Stock
- a unit of ownership in a company
- Mutual fund
- large, professionally managed group of investments
- Annuity
- a contract sold by an insurance company that provides the investor with a series of regular payments
- Penny stocks
- low priced stocks of small companies that have no track record