Glossary of Financial Terms · Glossary of Financial Terms Ask The lowest price at which anyone is willing to sell a stock. Annuity Any series of equal payments or deposits designed

Glossary of Financial TermsAsk The lowest price at which anyone is willing to sell a stock.

Annuity Any series of equal payments or deposits designed to repay a loan (installment loan or mortgage) or to

accumulate to a particular sum.

Asset Allocation The way to divide a portfolio into different classes of investments.

Bear Market A weak market where stock prices are falling.

Bid The highest price at which anyone is willing to buy a stock.

Blue Chip Stocks Common stocks of leading companies that offer a record of continuous dividend payments and other

strong investment qualities.

Board Lot A standard trading amount, usually 100 shares, which has been agreed upon by stock exchanges.

Bond A loan made to a company or government for a fixed amount of interest for a specified period of time.

Budget A plan for spending and saving.

Bull Market A strong market where stock prices are rising.

Capital Money, assets, securities and inventory.

Capital Gain The profit made on the sale of an investment exclusive of interest.

Capital Loss The loss incurred on the sale of an investment exclusive of interest.

Capital Markets Markets where debt and equity funds are traded.

Cash (Cash Equivalents) Investments that can be changed easily into currency.

Commission The fee that is paid for buying or selling investments.

Coupon A part of a bond, which can be presented at a bank to receive specified interest payments after the due date.

CPI (Consumer Price Index) A measure of change in consumer prices as determined by a monthly statistical survey.

Deflation A decrease in the cost of goods and services over a period of time resulting in an increase in the

purchasing power of the dollar.

Debt Money that has been borrowed and must be repaid with interest by a set date.

Derivatives A class of trading instruments that has no tangible net worth but get their value from the claim to some

other financial asset.

Diversification Reducing risk by spreading money among various types of investments.

Dividend A portion of a company’s profits paid to shareholders.

Equities Stocks, which represent a share in the ownership of a company.

Futures Contracts to buy or sell an investment or asset at an agreed price with delivery on a specified date in the future.

GIC (Guaranteed Investment Certificates offered by banks, trust companies and credit unions, which offer a form of principal

Certificates) and interest guaranteed for the term of the certificate.

Inflation An increase in the cost of goods and services over a period of time resulting in a decrease in the purchasing

power of the dollar.

Interest Money that is paid for the use of someone else’s money.

IPO (Initial Public Offering) The first sale of shares by a company to the general public. Also called Primary Distribution.

Market Index A statistical measure of the market of economy based on the performance of stocks, bonds and commodities.

Mutual Fund A pool of money invested in a wide range of investment options.

Option A contract between a buyer and a seller that carries terms allowing an investor to lock in a predetermined

purchase or sale price for a particular security.

Portfolio Holdings of securities by an individual or institution.

TEACHER

160 PART 3: GLOSSARY OF FINANCIAL TERMS

TEACHER

PART 3: GLOSSARY OF FINANCIAL TERMS 161

Present Value The value today of a future payment discounted at some appropriate compound interest rate.

Prospectus A legal document that provides detailed information about a company’s line of business, financial position

and plans for the sale of stock.

REITs (Real Estate Company that owns and sometimes operates income-producing real estate (i.e., apartments, malls, offices,

Investment Trust) and industrial parks)

Risk Tolerance An investor’s ability to accept the possibility of losing capital.

Royalty Trusts Investments that tend to be energy-related focusing on fossil and synthetic fuels.

RRSP (Registered Retirement A personal retirement fund to which a Canadian can contribute in order to save money. The money

Savings Plan) in an RRSP can be invested in approved stocks, bonds or money instruments. The advantage of an RRSP is

that the tax on any money contributed to this fund, as well as any money earned on the investments in this

fund, is deferred until the money is withdrawn.

Rule of 72 The Rule of 72 states the product of the annual growth rate of an investment and the number of years for

the investment to double in value is approximately 72. For example, an investment growing at a rate of 8%

per annum could be expected to double in value in approximately 9 years.

Stocks Shares in the ownership of a corporation that are a claim on its earnings and assets.

Stock Market A place that brings together users and providers of capital.

Strip Bonds Bonds where the interest coupons have been detached from the principal. The principal and the coupons

trade separately, usually at a substantial discount. Examples of strip bonds are federal and provincial

government bonds.

Taxes Money levied by the government on income and sales.

Ticker A record of current trading that has occurred on an exchange, previously printed on paper,

currently displayed on an electronic board.

Trade An exchange in which buyers and sellers agree on a price.

STUDENT

162 PART 3: APPENDIX

Creating An Investment Portfolio

Worksheet 1: Investment TeamsNames of Investment Team Members and Roles:(Possible roles may be Mathematician, Writer, Organizer, Facilitator). Beside each team member's name, record their roles with a short

description of their responsibilities.

Group Discussion and Decision Tasks:1. Decide on an Investment Team Name: __________________________________________________________________________

2. Design an Investment Team logo:

3. Describe your Investor Personality Profile: Who is your client?

A Description of Our Client:Age ____________________ Gender________________________

Educational Status __________________________________Marital status________________________________________________

Career__________________________________________________________________________________________________________

Monthly income ________________________________________________________________________________________________

Spending habits ________________________________________________________________________________________________

Saving patterns ________________________________________________________________________________________________

Expenses ______________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Other factors you feel are relevant: ________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

PART 3: APPENDIX 163

STUDENT


Worksheet 2:Investment Goal(s)**Goals: Short term – one year, medium term – one to three years, long term – more than three years.

1. Read Step 2 (page 126) and write the definitions for the following terms:

Risk:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Time Frame:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Return:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Liquidity:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Inflation:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Diversification:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Describe your client’s prime investment goal in the space below: (See page 2 of this worksheet for aweb site and questions for your team to think about.)

a. Goal (eg. Further education, Retirement, New car): ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b. Dollar value of goal:________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

c. Anticipated investment/savings per month or year towards goal:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


STUDENT


Worksheet 2 (page 2):Investment Goal(s)*“Detailed questions to ask in your investment team discussions to assist with your investment plan” (Source IFICInvestment Funds Institute of Canada Web site www.ific.ca)

1. What are the client's objectives? ______________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. How much risk is the client comfortable with and why? __________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. What are the client's up-coming financial needs, and goals, when will they need money to meet or achieve

these needs/goals? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. How much does the client have to invest? Do you know how much money can be invested on a monthly or yearly basis?

Will the client be adding to their portfolio each year? ______________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. What are the client's current investments? How much are they worth? What is the client's family situation? How much

money do they require each month to maintain their standard of living? ____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. If relevant, when do they plan to retire?______________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


STUDENT


Worksheet 3:Asset Allocation ModelGoals: Short term – one year, medium term – one to three years, long term – more than three years.

Names Of Investment Team Group Members: ______________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1. Read Step 3 (page 127) then define the following asset allocation categories and give three examples of each:

a. Cash and Cash Equivalents __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b. Fixed Income ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

c. Equity ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

d. Speculative ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Discuss and describe an asset allocation mix which is suitable for your client’s personality profile andinvestment goal(s). Consider risk and return carefully.

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


STUDENT


Worksheet 4:Capital Markets and Investing Goals: Short term – one year, medium term – one to three years, long term – more than three years.

Names Of Investment Team Group Members: ______________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1. Write the definition of:

a. Capital Market (page 75): ______________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

b. Institutional Investor (page 76/77): ________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

c. Individual Investor: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

d. Secondary Market: ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Practise Group Task For Your PortfolioTask: Invest $3,000 in stocks for your client. Complete the chart as a group activity and place the completed chart in your group’s portfolio.

Design a spreadsheet to help you with your group’s work. Some column headings may be:

A B C D E F G

Date Company Symbol No. of Shares Price per Share Total Amount Left ($3000-F)


STUDENT


Worksheet 4 (page 2):Mutual Funds Goals: Short term – one year, medium term – one to three years, long term – more than three years.

1. To complete your portfolio assignment for mutual funds follow the instructions in the order listed below:

a. Read Step 4 – Investment Decision, (page 128)

b. Go to the web site to read about mutual funds

2. Answer the following questions to help with your understanding of mutual funds:

a. Write the definition of a Mutual Fund. ________________________________________________________________________

b. Describe Net Asset Value Per Share (NAVPS). __________________________________________________________________

c. Describe Management Expense Ratio (MER). __________________________________________________________________

d. What is the main benefit of a mutual fund investment. __________________________________________________________

e. Make a list of five to seven types of mutual funds. ______________________________________________________________

Practise Group Task For Your PortfolioGroup Task: Invest $3,000 in some mutual funds for your client. To record your investment, design and complete a chart in your group

and place the completed chart in your group’s portfolio.

In your chart — state the name of the mutual fund, the purchase price, the number of shares and the totalamount invested.

Name Purchase Price NAVPS Number of Shares Total Amount


STUDENT


Worksheet 5: Records And Monitoring 1. Read Step 5 (page 128) Portfolio Records and Monitoring

Determine a method for recording your client’s investments.

a. Describe your method of recording the purchases of your investment choices.

b. Provide your client with the forms and/or spreadsheet and/or database to monitor investments made.

c. Read the portfolio project report and presentation rubrics.

d. Discuss and assign tasks for the completion of your portfolio project.

Taking Stock in Your Future

Investment Portfolio Teaml Create a name for your investment team

l Design a logo or symbol

OVERHEAD A

ACTIVITY 7: OVERHEAD 151

OVERHEAD B


Creating an InvestmentPortfolio TaskYour team will play the role of a financial planner

who will propose a personal portfolio for a client.

Your team will present your findings in two forms.

l a written report for the client

l a presentation of the results to the client

152 ACTIVITY 7: OVERHEAD

OVERHEAD C


Creating an InvestmentPortfolio PresentationThe presentation to the client must include

visuals (graphs) and highlight the key results

of the report. It should be no longer than

10 minutes and be given to help the client

understand the report and the portfolio.


OVERHEAD D


Creating an InvestmentPortfolio ReportThe report should have a table of contents and

be organized into the following sections:

1 Investor Personality Profile

2 Investment Goals

3 Asset Allocation Model

4 Investment Decisions

5 Portfolio Records and Monitoring

154 ACTIVITY 7: OVERHEAD

OVERHEAD E


Step 1: Investor Personality Profilel You have the freedom to create your fictitious client but you

must choose either a university education for a child orretirement as the investment goals.

l Your client may be any age, sex or marital status you wish.Determine occupation, savings, income, number of children,and RRSPs.

l As you complete the investor profile activity, refer to theprofiles provided and try to answer the questions as yourclient would.

l Keep track of the questions and answers as part of their profile.

l Write a profile of your clients.

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Documents

Glossary of Financial Terms · Glossary of Financial Terms Ask The lowest price at which anyone is willing to sell a stock. Annuity Any series of equal payments or deposits designed