PF OBJ 5.03 Vocab

Front

Bond

Back

A form of lending to a company or government.

Front

Brokerage firm

Back

Facilitates buying/selling of investments from a stock exchange

Front

Capital Gain

Back

Unearned income from selling an asset above its purchase price.

Front

Discount brokerage firm

Back

Only completes orders to buy and sell investments

Front

Dividend

Back

Share of profits distributed in cash

Front

Inflation

Back

The rise in the general level of prices

Front

Investment

Back

Assets bought to generate income, with risk of loss.

Front

Mutual fund

Back

Created by combining funds from various investors to invest in a diversified portfolio.

Front

Portfolio diversification

Back

Reduces risk by spreading money across various investments.

Front

Rate of return

Back

Total return on an investment as a percentage of money saved.