econ

The act of redirecting resources from being consumed today so that they may create benefits in the future

• Savings
• Consumption
• Debt
• Investment

the network of structures and mechanisms that allows the transfer of money between savers and borrowers

• Credit union
• Financial system
• Investment network
• Banking system

claims on the property or income of the borrower, or securities

• investment

• financial system

• financial assets

• financial intermediaries

institiutions that help channel funds from savers to borrowers

• Financial intermediaries

• Insurance companies that provide life coverage
• Investment firms that only manage stocks
• Real estate agencies that sell properties

pools teh savings of many individuals and invests the money in a variety of stocks, bonds, and other financial assets

• stock exchange
• mutual fund
• savings account
• hedge fund

a private investment organization that employs risky strategies that often make huge profits for investors

• Hedge Fund
• Venture Capital
• Private Equity
• Mutual Fund

the strategy of spreading out investments to reduce risk

• Diversification
• Concentration
• Hedging
• Speculation

collections of financial assests

• Savings account
• Real estate
• portfolio

• Stock market analysis

all intermediaries provide this and other information to potential investors in an investment report called a ___________

• summary report
• investment brochure
• financial statement
• prospectus

the money an investor receives above and beyond the sum of money that has been invested

• Return

• Investment
• Loss
• Revenue