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Ch. 8
Ch. 8
10
Finance
12th Grade
11/07/2014

Additional Finance Flashcards

 


 

Cards

Term
diversification
Definition
the practice of dividing the money a person invest between several different types of investments in order to lower risk
Term
investing
Definition
the processes of setting money aside to increase wealth over time for long-term financial goals such as retirement
Term
investment
Definition
account or arrangement in witch a person puts his/her money for long-term growth; invested money should not be used for a suggested minimum of five years
Term
liquidity
Definition
quality of an asset that permits it to be converted quickly into cash without loss value; availability of money
Term
portfolio
Definition
a list of your investments
Term
risk
Definition
degree of uncertainty of return on asset; in business, the likelihood of loss of value or reduce profit
Term
risk-return ratio
Definition
relationship of substantial reward compared to the amount of risk taken
Term
share
Definition
piece of ownership in a company. mutual fund or other investment
Term
stocks
Definition
securities that represent part ownership or equity in a corporation
Term
tax-favored dollars
Definition
money that is invested, either tax deferred or tax-free within a retirement plan
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