Upload
maalik
View
38
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Chapter 14 Review Mutual Funds & Other Types of Investments. Personal Finance. 1. An individually owned unit in an apartment-style complex with shared ownership of common areas. Condo . 2. Also known as a limited partnership. Real estate syndicate . . 3. - PowerPoint PPT Presentation
Citation preview
Chapter 14 ReviewMutual Funds & Other Types of
InvestmentsPersonal Finance
1• An individually owned unit in an
apartment-style complex with shared ownership of common areas.
• Condo
2• Also known as a limited
partnership. • Real estate syndicate.
3• A term for very risky investments.• Speculative
4• Why are collectibles a speculative
investment?• Subject to consumer tastes• Volatile prices• Difficult to sell
5• List an advantage of investing in
mutual funds. • Diversity• Professional management• Low initial investment
6• The organizer of a real estate
syndicate is called the general partner or ________.
• Syndicator
7Mutual fund companies offer a
variety of funds covering a whole range of investment objectives. The complete offering of a mutual fund company is their _________.
family of funds
8• A building with two separate living
quarters. • Duplex
9• List a disadvantage to being a
landlord.• Tenants who don’t pay or damage
property.
10• List an advantage to investing in
real estate.• Property usually appreciates at a
rate higher than inflation
11• Why do banks ask for a larger
down payment when a borrower is taking out a mortgage for a rental property?
• Risk
12• A term that means easy to
convert to cash.• Liquid
13• The investors in a real estate
syndicate are called __________and are only liable for the amount of their initial investment.
• limited partners
14• List the 2 ways in which an
investor can make money off of mutual funds.
• Dividends• Capital gain
15• A corporation that pools the
money of many individuals to invest in real estate.
• REIT
16• A fee that helps defray the costs
of marketing and distributing a mutual fund.
• 12b-1 fee
17• The most commonly traded
collectible.• Coins
18• Another term for real estate.• Real property
19• Other than coins, list an example
of a collectible.• Antiques, baseball cards
20• Why are municipal bonds less
risky than corporate bonds?• Municipal bonds are less likely to
be defaulted on.
21• The goal of this type of mutual
fund is to buy stocks that will increase in value over time. Investors hope to profit through capital gain, not dividends.
• Growth fund
22• What is capital gain?• Income earned on an investment
23• ____________ is land and
buildings that produce lease or rental income.
• Commercial property
24• An _______________ invests in
stocks of new or out-of-favor companies and industries that the fund managers think will achieve above-average increases in value.
• aggressive growth fund
25• A term for a very risky bond.• Junk bond
26• A legal document that offers
securities or mutual fund shares for sale.
• Prospectus
27• A single-family home purchased
to rent.• Detached house
28• A decline in the value of property
due to normal wear and tear. • Depreciation
29• Vacant land or unimproved
property. • Raw land
30• List a disadvantage to investing in
precious metals.• Volatile prices• Storage
31• If a mutual fund is purchased
through a broker, you will pay a sales fee called a _____.
• Load
32• The NASDAQ contains this type
of stocks.• Many technology stocks among
others.
33• These items are made valuable
because they are old, no longer made, unusual, irreplaceable, or of historic importance.
• Collectibles
34• The goal of this type of mutual
fund is to buy securities that pay dividends.
• Income fund
35• ________ are contracts to buy
and sell commodities or stocks for a specified price on a specified date in the future.
• Futures
36• A sales charge paid when you
buy an investment. • Front-end load
37• An investment in a pool of
mortgages that have been purchased by a government agency.
• Participation certificate
38• A mutual fund that attempts to
minimize risk by investing in a mixture of stocks (preferred and common) and bonds (corporate and municipal) that provide both current income and growth.
• Balanced fund
39• The rent is enough to cover
mortgage, taxes, and upkeep. • Positive cash flow
40• A real estate investment that is
similar to a mutual fund.• REIT
41• A sales charge paid when you sell
an investment. • Back-end load
42• A _________________is a
mutual fund whose investment goal is to earn returns from both dividends and capital gains.
• growth and income fund
43• The rent is not enough to cover
costs. • Negative cash flow
44• An __________is a mutual fund
that tries to match the performance of a particular index by investing in the companies included in that index.
• Index fund
45• What type of securities would a
Dow Fund contain?• Blue Chips
46• Collects rent, hires and pays
people to make repairs and maintain the property, charges a fee for his or her services, and remits the difference to the owner of the property.
• Property manager
47• A fund that does not charge a
sales fee when you buy or sell because no sales people are involved. Funds are purchased directly from the company.
• No-load fund
48• A mutual fund that invests in
bonds to try to achieve stable income with minimal risk.
• Bond fund
49• A landlord that lives at the
property. • Resident landlord
50• A mutual fund that purchases
international stocks and bonds as well as U.S. securities.
• Global fund
Final Question• List and explain three different
categories of mutual funds.