Investing in Your Future Vocabulary

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Presentation transcript:

Investing in Your Future Vocabulary Personal Finance Chapter 11

Investing in Your Future The use of savings to earn a financial return http://dictionary.reference.com/browse/investing?s=t

Investing for Your Future Inflation A rise in general level of prices

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

Investing for Your Future Risk The chance that an investment’s value will decrease

Investing for Your Future Diversification An investment strategy for spreading risk among different types of investments

Investing for Your Future Financial advisers Professional investment planners who are trained to give investment advice

Investing for Your Future Annual report An SEC-required summary of a corporation’s financial results for the year and prospects for the future

Investing for Your Future Bonds An investment that represents the debt of a company or a government

Investing for Your Future Discount bond A bond purchased for less than its maturity value

Investing for Your Future Mutual fund A professionally managed group of investments bought using a pool of money from many investors

Investing for Your Future Annuity A contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement

Investing for Your Future Stock A unit of ownership in a corporation

Investing for Your Future Futures Contracts to buy and sell commodities or stocks for a specified price on a specified date in the future

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

Investing for Your Future Penny stocks Low-priced stocks of small companies that have no track record

Investing for Your Future Transition

Investing for Your Future A bond purchased for less than its maturity value. Annuity Discount bond Diversification Investing

Investing for Your Future A contract sold by an insurance company that provides the investor a series of regular payments, usually after retirement. Annuity Discount bond Diversification Investing

Investing for Your Future An investment strategy for spreading risk among different types of investments. Annuity Discount bond Diversification Investing

Investing for Your Future The use of savings to earn a financial return. Annuity Discount bond Diversification Investing

Investing for Your Future A rise in the general level of prices. Annuity Bonds Inflation Rule of 72

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?

Investing for Your Future Transition

Investing for Your Future The chance that an investment’s value will decrease. Annuity Financial advisers Risk Stock

Investing for Your Future An SEC-required summary of a corporation’s financial results for the year and the prospects for the future. Annuity Financial advisers Risk Stock

Investing for Your Future A unit of ownership in a corporation. Annuity Financial advisers Risk Stock

Investing for Your Future Professional investment planners who are trained to give investment advice. Annuity Financial advisers Risk Stock

Investing for Your Future An investment that represents the debt of a company or a government. Annuity Bonds Rule of 72 Stock

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?

Investing for Your Future Transition

Investing for Your Future A professional investment managed group of investments bought using a pool of money from many investors. Futures Mutual funds Option Penny stocks

Investing for Your Future Contracts to buy and sell commodities or stocks for a specified price on a specified date in the future. Futures Mutual funds Option Penny stocks

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. Futures Mutual funds Option Penny stocks

Investing for Your Future Low-priced stocks of small companies that have no track record. Futures Mutual funds Option Penny stocks

Investing for Your Future Technique for estimating the number of years required to double your money at a given rate of return. Mutual funds Option Penny stocks Rule of 72

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?

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?

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?

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