PERSONAL FINANCE - Chapter 6 Vocabulary Test

Front

Purchasing a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss

Back

Investment

Front

Spreading risk by putting money in different types of investments

Back

Diversification

Front

Outlines how to develop investment growth

Back

P.I.P. (Personal Investment Plan)

Front

A collection of the investments a person has made

Back

Investment Portfolio

Front

A quick + unexpected change in value or price

Back

Volatility

Front

Amount earned on interest for a given period of time

Back

Rate of Return

Front

The amount of money earned on investments normally annual percentage

Back

Yield

Front

An increase in the value of an investment

Back

Appreciation

Front

A loss of money that occurs when the selling price of an investment is less than the purchase price

Back

Capital Loss

Front

An income resulting from selling an asset for more than the purchase price

Back

Capital Gain