Font size
Worksheetsinvestment
Total questions: 21
Worksheet time: 2hrs 45mins
Market Risk
equity risk, interest rate risk, and currency risk
accept lower prices, may not be possible to sell
not diversifying your portfolio
liquidity risk
accept lower prices for investments, may not be possible to sell
not diversifying your portfolio
debt-investments
concentration risk
not diversifying your portfolio
accept lowers prices, may not be possible to sell
risk of nationalization
credit
entity that issued bond may run into $ problems and wont be able to pay ( debt- investments )
reinvesting principal or income at a lower interest rate
cash or debt investments
reinvestment
accept lower prices, may not be possible to sell
reinvesting principal or income at a lower interest %, buy bond at 5% - drops to 4%
not diversifying your portfolio
inflation risk
loss in purchasing power bc value of investment doesn't keep up with inflation ( bonds )
accept lower prices, may not be possible to sell
accept lower prices for investments, may not be possible to sell
horizon risk
horizon may shortened bc of unforeseen events
accept lower prices for investments, may not be possible to sell
entity that issued bond may run into $ problems and wont be able to pay ( debt- investments )
least-most risk
savings
checkings
GIC
Government bond
Municipal Bond
least - most risk
corporate bond
income mutual fund
growth mutual fund
blue chip stock
penny stock
least-most risk
real estate
art collection
gold and sliver
stuffed animal collection
what is asset allocation
dividing an investment portfolio among diff asset categories, like stocks / bonds /cash
expected amount of time you will be investing to reach a goal
savings bond
a loan to a government that is secured by the general credit & taxation powers of the government
a short-term loan to a government
deposit certificate issued by a financial institution
t-bill
deposit certificate issued by a financial institution
a short-term loan to a government
a loan to a government that is secured by the general credit & taxation powers of the government
GIC
deposit certificate issued by a financial institution
a short-term loan to a government
a loan to a government that is secured by the general credit & taxation powers of the government
bond
a loan to government/company that is secured by the governments power to tax or by specific asset classes
an ownership in a pool of mortages
a share that has voting rights
common share
a share that has voting rights
an ownership in a pool of mortages
a loan to government/company that is secured by the governments power to tax or by specific asset classes
preferred share
a share that usually pays a fixed dividend
a share that has voting rights
an ownership in a pool of mortages
options
the right to buy or sell an asset at specific price for a specific period of time.
investment pool that uses advanced strats ; leverage, long & short positions
investing in different currencies to make money on exchange rate
hedge fund
the right to buy or sell an asset at specific price for a specific period of time.
investment pool that uses advanced strats ; leverage, long & short positions
investing in different currencies to make money on exchange rate
foreign currency
investment pool that uses advanced strats ; leverage, long & short positions
investing in different currencies to make money on exchange rate
the right to buy or sell an asset at specific price for a specific period of time.
dollar cost averaging
the practice of
building up investment capital gradually over
time, rather than investing an initial lump
sum.
The time it will take an investment (or debt) to
double in value at a given interest rate using
compounding interest.
