Unit Four FL

5. is the money you make from investing.
6. when a private company sells its stock to the public for the first time, allowing it to raise capital and become a publicly traded company.
9. If a company seems unprofitable, it's stocks ___________________ in value.
10. Let you pool your money with other investors to "mutually" buy stocks, bonds, and other investments.
14. Time-bound savings accounts, they have higher interest rates but depositor are unable to withdrawal their money for a period of time.
16. represents an investors share of a company.
17. are accounts offered by banks, where the depositor saves money.
18. are a certificate representing the purchaser’s agreement to lend money to the government on the promise that the debt will be paid back—with interest
19. is when you use your money to buy something (real estate, stocks, mutual funds, etc) in hopes it will increase in value over a longer time period.
20. is represented by T
21. is the level of uncertainty regarding the return on an investment and the damage that could arise when those returns are lower than expected.
22. True or False: Stocks are high reward with low risk.
23. True or False: Financial Advisors recommend that your investment portfolio should be diverse.

1. is calculated on the principal amount and the interest that has already accumulated in the account.
2. is a set of financial assets owned by an investor
3. is represented by P
4. are pieces of a company that you own.
7. the initial amount borrowed or invested.
8. A financial principle that states the value of a dollar today is worth more than the value of a dollar in the future.
11. is represented by R
12. is calculated only on the principal amount, and the interest is added to the account at the end of the term.
13. The cost of borrowing money.
15. If a company seems profitable, it's stocks ______________ in value.
17. is a place where individuals can trade, buy and sell stocks to companies. A physical example is Wall Street in NYC.