19.5 other investments Flashcards Preview

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Flashcards in 19.5 other investments Deck (40):
1

the value of collectibles is most influenced by:

  • the current tax rate on investments
  • government regulations of the market
  • the futures market for commodities
  • interested buyers and potential sellers

interested buyers and potential sellers

2

What are some agricultural products traded on commodity exchanges?

  • corn
  • soybeans
  • wheat

3

____ are bought and sold on exchanges similar to stock exchanges, buyers and sellers are represented by traders on the exchanges

commodities are bought and sold on exchanges similar to stock exchanges

4

agreements to buy or sell an amount of a commodity at a specified price in the future

futures contract

5

What is an advantage of collectibles?

the personal pleasure of buying, collecting, storing, arranging and displaying what is collected

6

an investment with an unusually high risk

speculative investment

7

items of personal interest to collectors that can increase in value in the future

collectibles

8

using your savings to earn more money

investing

9

what is one of the best known commodities exchanges?

Chicago Board of Trade (CBOT)

10

the percentage of money earned on your savings or investment over a year, also called the rate of return

yield

11

the ease with which an investment can be changed into cash without losing its value

liquidity

12

land and anything that is attached to it

real estate

13

include grain, livestock, and precious metals

commodities

14

What types of commodities are commonly used with futures contracts?

  • agricultural commodities
  • currencies commodities

15

grain, livestock, and precious metals

commodities

16

the price at which a share of stock can be bought and sold in the stock market

market value

17

What affects the prices of precious metals?

  • economic conditions
  • supply and demand

18

investors have traded ___ and ___ on commodity markets for centuries.

investors have traded gold and silver on commodity markets for centuries

19

licensed specialist in the buying and selling of stocks and bonds

stockbroker

20

storage of money for future use

saving

21

____ producers sell their crops in advance of a harvest at what they beleive is a good price, farmers will then know in advance how much they will receive for a crop

Agricultural producers sell their crops in advance of a harvest at what they beleive is a good price, farmers will then know in advance how much they will receive for a crop

22

items of personal interest to collectors that can increase in value in the future

collectibles

23

the difference between the price at which you could currently sell your house and the amount owed on the mortgage

equity

24

bonds issued by local and state governments

municipal bond

25

What are common types of collectibles?

  • stamps
  • coins
  • sport trading cards
  • art
  • antiques

26

an agreement to buy or sell an amount of a commodity at a specified price in the future

futures contract

27

bonds issued by corporations

corporate bond

28

stock that has first priority in the payment of dividends

preferred stock

29

What currencies are sold on commodities exchange?

  • US dollar
  • euro
  • japanese yen
  • treasury bills
  • treasury notes

30

investments set up and managed by comanies that receive money from many investors

mutual fund

31

What collectibles tend to be items that an investor can make a considerable profit?

  • rare stamps
  • coins
  • art
  • antiques

32

current price quoted for precious metals in the world markets

spot prices

33

business organizations that accommodate the buying and selling of securities

stock exchange

34

What are some precious metals that are traded on commodity markets?

  • gold
  • silver
  • copper
  • platinum

35

What are pros and cons of investing in precious metals?

Pros

  • protect against currency becoming worthless
  • gold could be used for buying goods and services if paper money isn't accepted

Cons:

  • does not earn interest
  • only profit if you sell them later at a price higher than what you paid

36

a legal document giving the lender a claim against real estate property

mortgage

37

the amount that your local government determines your property to be worth for tax purposes

assessed value

38

represents general ownership in a corporation and a right to share in its profits

common stock

39

What conditions affect agricultural commodity prices?

  • weather
  • international trade agreements
  • worldwide demand and supply

40

the spot price for gold or silver refers to the:

  • interest for borrowing to buy the precious metal
  • current market price of the precious metal
  • future market price of the precious metal
  • global price for the metal set by the world bank

current market price of the precious metal