investing in your future vocabulary personal finance chapter 11
TRANSCRIPT
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Investing in Your FutureVocabulary
Personal FinanceChapter 11
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Investing in Your Future
Investing The use of savings to earn a
financial return http://dictionary.reference.com/bro
wse/investing?s=t
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Investing for Your Future
Inflation A rise in general level of prices
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Investing for Your Future
Rule of 72 Technique for estimating the
number of years required to double your money at a given rate of return
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Investing for Your Future
Risk The chance that an investment’s value
will decrease
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Investing for Your Future
Diversification An investment strategy for
spreading risk among different types of investments
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Investing for Your Future
Financial advisers Professional investment planners
who are trained to give investment advice
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Investing for Your Future
Annual report An SEC-required summary of a
corporation’s financial results for the year and prospects for the future
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Investing for Your Future
Bonds An investment that represents the
debt of a company or a government
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Investing for Your Future
Discount bond A bond purchased for less than its
maturity value
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Investing for Your Future
Mutual fund A professionally managed group of
investments bought using a pool of money from many investors
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Investing for Your Future
Annuity A contract sold by an insurance
company that provides the investor a series of regular payments, usually after retirement
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Investing for Your Future
Stock A unit of ownership in a corporation
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Investing for Your Future
Futures Contracts to buy and sell
commodities or stocks for a specified price on a specified date in the future
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Investing for Your Future
Option The right, but not the obligation, to
buy or sell a commodity or stock for a specified price within a specified time period
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Investing for Your Future
Penny stocks Low-priced stocks of small
companies that have no track record
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Investing for Your Future
Transition
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Investing for Your Future
A bond purchased for less than its maturity value.
A. AnnuityB. Discount bondC. DiversificationD. Investing
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Investing for Your Future
A contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement.
A. AnnuityB. Discount bondC. DiversificationD. Investing
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Investing for Your Future
An investment strategy for spreading risk among different types of investments.
A. AnnuityB. Discount bondC. DiversificationD. Investing
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Investing for Your Future
The use of savings to earn a financial return.
A. AnnuityB. Discount bondC. DiversificationD. Investing
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Investing for Your Future
A rise in the general level of prices.A. Annuity B. Bonds C. InflationD. Rule of 72
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Investing for Your Future
If Ricardo invested $1000 at a 5 percent average return, how many years would it take for his investment to be worth $2000?
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Investing for Your Future
Transition
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Investing for Your Future
The chance that an investment’s value will decrease.
A. Annuity B. Financial advisersC. Risk D. Stock
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Investing for Your Future
An SEC-required summary of a corporation’s financial results for the year and the prospects for the future.
A. Annuity B. Financial advisersC. Risk D. Stock
![Page 27: Investing in Your Future Vocabulary Personal Finance Chapter 11](https://reader035.vdocuments.site/reader035/viewer/2022062314/56649dbe5503460f94ab0d94/html5/thumbnails/27.jpg)
Investing for Your Future
A unit of ownership in a corporation.A. Annuity B. Financial advisersC. Risk D. Stock
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Investing for Your Future
Professional investment planners who are trained to give investment advice.
A. Annuity B. Financial advisersC. Risk D. Stock
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Investing for Your Future
An investment that represents the debt of a company or a government.
A. Annuity B. Bonds C. Rule of 72D. Stock
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Investing for Your Future
Michael Johnson would like to invest in XYZ Corporation. He heard that the company is big and powerful. You’ve never heard of it.
What kinds of information should he have before he invests in this company?
Where can he get that information?
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Investing for Your Future
Transition
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Investing for Your Future
A professional investment managed group of investments bought using a pool of money from many investors.
A. Futures B. Mutual fundsC. OptionD. Penny stocks
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Investing for Your Future
Contracts to buy and sell commodities or stocks for a specified price on a specified date in the future.
A. Futures B. Mutual fundsC. OptionD. Penny stocks
![Page 34: Investing in Your Future Vocabulary Personal Finance Chapter 11](https://reader035.vdocuments.site/reader035/viewer/2022062314/56649dbe5503460f94ab0d94/html5/thumbnails/34.jpg)
Investing for Your Future
The right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time period.
A. Futures B. Mutual fundsC. OptionD. Penny stocks
![Page 35: Investing in Your Future Vocabulary Personal Finance Chapter 11](https://reader035.vdocuments.site/reader035/viewer/2022062314/56649dbe5503460f94ab0d94/html5/thumbnails/35.jpg)
Investing for Your Future
Low-priced stocks of small companies that have no track record.
A. Futures B. Mutual fundsC. OptionD. Penny stocks
![Page 36: Investing in Your Future Vocabulary Personal Finance Chapter 11](https://reader035.vdocuments.site/reader035/viewer/2022062314/56649dbe5503460f94ab0d94/html5/thumbnails/36.jpg)
Investing for Your Future
Technique for estimating the number of years required to double your money at a given rate of return.
A. Mutual fundsB. OptionC. Penny stocksD. Rule of 72
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Investing for Your Future
Friends of your family, who were recently married, are now finding that they have money left over each month that they could invest. They would like to consult a financial adviser but don’t know one.
What tips would you give them about selecting a financial adviser?
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Investing for Your Future
Friends of your family, who were recently married, are now finding that they have money left over each month that they could invest. They would like to consult a financial adviser but don’t know one.
What tips would you give them about selecting a financial adviser?
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Investing for Your Future
Kim Possible would like to invest $10,000 she inherited from her uncle. She would like to have the money for her daughter's college education starting in eight years. She does not like to take a lot of risk because she cannot afford to lose $10,000.
What course of action would you suggest for Kim?
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Investing for Your Future
Assume that Kim Possible invested her $10,000 in a way that earned an average of 6 percent annual return. Assume that college will cost $5,000 a year for four years.
College planner tool