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PF Chapter 11--Investing for Your Future

Vocabulary

AB
financial advisersProfessional investment planners are called _____.
inflation____is a rise in the general level of prices
investing____is the use of savings to earn a financial return.
riskThe chance that an investment's value will decrease is called ___.
annual reportA(n) ___ is a document that gives the financial history of a corporation.
diversificationThe spreading of risk among many types of investments is called ____.
Rule of 72A formula used to estimate time or rate to double your money
Stock___represents ownership in a corporation
Bonds___are debt obligations of corporations or a government.
mutual fundpools of money of many investors and buys a large selection of securities
annuitya contract issued by an insurance company to pay you regular income
doscount bondbond is purchased for less than its maturity value.
futurescontracts to buy and sell commodities for aspecified price on a specified future date.
penny stocksLow-priced stocks of small companies that have no track record
optionthe right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time period.


East Laurens High School
East Dublin, GA

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