Chapter 1: Introduction To Investing Archives - PersonalFinanceLab

1-14 Chapter 1 Exam

admin — Mon, 06 Jun 2016 14:40:58 +0000

[qsm quiz=22]

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1-13 Resources

admin — Mon, 09 May 2016 10:49:40 +0000

Bond (Corporate, Treasury, or Municipal): A debt obligation of a company, the U.S. Treasury Department, or a city where the borrower receives funds (usually in increments of $1,000), makes semi-annual interest payments based on the coupon rate, and eventually repays the borrowed amount ($1,000) to the lender at the maturity date of the bond. Certificates Read More...

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1-12 Understand Risk and Investing

admin — Mon, 09 May 2016 10:48:45 +0000

Regardless of your choice of investment types, you should learn about and understand the correlation of risk to the size and type of your investments. First, become familiar with the traditional risk levels of various types of asset groups ( stocksStocks are “equity investments” which means that individuals that own stock shares of a company Read More...

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1-11 Recent Performance of Investments

admin — Mon, 09 May 2016 10:48:19 +0000

For those just beginning, a good point of reference is the recent performance of the common investments described above. How have they done over the last five years? These charts illustrate their performance over the same time period. When looking at the charts, keep in mind what you read earlier in the lesson and what you’ve Read More...

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1-10 Real Estate

admin — Mon, 09 May 2016 10:47:53 +0000

Buying and selling real estate as an investment strategy is quite different from simply buying a home or commercial building. Just as important in determining FMV (fair market value) as comparable properties are when buying a home, the income stream generated by a property is a primary component for an investor. You typically have three Read More...

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1-09 Foreign Currency and Foreign Stocks

admin — Mon, 09 May 2016 10:47:29 +0000

Investing in FX (foreign exchange), currency speculation, and hedging are variations of the same basic investment strategy—you are betting that one currency will strengthen or weaken against the other. Not for the faint-hearted, these investments involve more due diligence and savvy than all of the other security types we have covered so far. Trading in Read More...

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1-08 Gold and Other Precious Metals

admin — Mon, 09 May 2016 10:46:59 +0000

Precious metals, particularly gold and silver, are attractive investments to many people. But as usual, you must learn to become a knowledgeable investor as precious metals can fluctuate in value as rapidly as common stocksStocks are “equity investments”, which means that individuals who own stock shares of a company actually own part of that company. Read More...

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1-07 Bonds

admin — Mon, 09 May 2016 10:46:38 +0000

Unlike stocksStocks are “equity investments” which means that individuals that own stock shares of a company actually own part of that company., which are equity instruments, bondsA debt obligation of a company, the U.S. Treasury Department, or a city where the borrower receives funds (usually in increments of $1,000), makes semi-annual interest payments based on Read More...

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1-06 ETFs (Exchange-Traded Funds)

admin — Mon, 09 May 2016 10:45:47 +0000

ETFs are a cross between mutual funds and stocks. ETFs are simply a portfolio of stocks or bondsA debt obligation of a company, the U.S. Treasury Department, or a city where the borrower receives funds (usually in increments of $1,000), makes semi-annual interest payments based on the coupon rate, and eventually repays the borrowed amount Read More...

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1-05 Mutual Funds

admin — Mon, 09 May 2016 10:45:18 +0000

A mutual fund is a type of investment where a money manager takes your cash and invests it as he sees fit, usually following some rough guidelines. For example, the Fidelity Group has a fund that specializes in finding high dividend paying stocksStocks are “equity investments”, which means that individuals that own stock shares of Read More...

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