SAVING AND INVESTING UNIT 2 INTRODUCTION TO FINANCIAL MARKETS.

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    31-Dec-2015

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<ul><li><p>SAVING AND INVESTINGUNIT 2INTRODUCTION TO FINANCIAL MARKETS</p></li><li><p>VOCABULARYDiversificationspreading out savings and investments over multiple categories</p></li><li><p>VOCABULARYDividendare the distribution of a company's profit or earnings to the company's shareholders or stockholders</p></li><li><p>VOCABULARYLiquidcan be bought and sold easily</p></li><li><p>VOCABULARYStockan investment product that represents partial ownership of a compnay or corporation</p></li><li><p>VOCABULARYProspectusthe legal document describing the mutual fund</p></li><li><p>VOCABULARYThe returnmore moneyInvestors run the risk of losing their money when they invest, but they stand to gain a returnmore moneyif the investment is profitable.</p></li><li><p>VOCABULARYSecuritiesinvestment instruments such as stocks and bonds</p></li><li><p>VOCABULARYTax-exempttaxes do not have to be paid</p></li><li><p>VOCABULARYAppreciationto increase</p></li><li><p>VOCABULARYMutual fundinvests the pooled money of its shareholders in various types of investments</p></li><li><p>VOCABULARYBondmeans investors have loaned money to a company or a governmental entitiy</p></li><li><p>VOCABULARYNo-loadno sales commissionAn employee takes your order to buy or sell, or can offer limited support.The investor is fully responsible for understanding the investment.</p></li><li><p>Talking PointsSavings Accounts</p><p>How does it relate to future investing?</p></li><li><p>Talking pointsLiquid</p><p>What does the use of the word liquid usually mean?</p></li><li><p>Talking PointsRisk Tolerance</p><p>Conservative vs high-risk</p></li><li><p>Talking PointsThe greater the risk, the higher the rate of return.</p></li><li><p>Talking PointsDividends</p><p>Who gets a dividend?</p></li><li><p>Talking PointsMunicipal</p><p>What does the word municipal mean?</p></li><li><p>Talking PointsManagement fee</p><p>What is this?</p><p>********************</p></li></ul>

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