| A | B |
|---|
| investment | the act of redirecting resources from being consumed today so they may create benefits in the future; the use of assets to earn income or profit |
| financial system | the system that allows the transfer of money between savers and borrowers |
| financial assets | claim on the property or income of a borrower |
| financial intermediary | institution that helps channel funds from savers to borrowers |
| mutual fund | fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets |
| diversification | spreading out investments to reduce risk |
| portfolio | a collection of financial assets |
| prospectus | an investment report to potential investors |
| return | the money an investor receives above and beyond the sum of money initially invested |
