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CH. 2 Key Terms
N\A
6
Finance
Not Applicable
09/17/2013
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Term
Diversification
 Definition
To spread your money around in order to lower the risk of your investments.
Term
Liquidity
 Definition
The availability of your money. Cash is very liquid; real estate is not.
Term
Mutual Fund
 Definition
Investors pool their money together to invest it in the stocks
Term
Risk
 Definition
The probability of getting your money back.
Term
Risk Return Ratio
 Definition
The higher the risk, the greater the expected return on investment.
Term
Share(stock)
 Definition
A piece of ownership in a public company.
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