Unit 18: Vocabulary

Please study the 20 vocabulary terms from Unit 18: Investments. Then continue to the activities.
blue-chip
considered to be a safe investment because of previous performance
Even blue-chip companies like Apple and Unilever are struggling as a result of the crisis.
bonds
an amount of money that a government or individual borrows and agrees to repay at a certain date with a certain amount of interest
Some investors cannot hold bonds with a risk rating worse than A.
boom
a period of sudden economic growth
Property investors became rich during the 1980's property boom.
broker
a person who acts in representation when buying or selling shares, insurance etc
His stock broker advised him to invest in KBL industries.
commodities
substances or products which can be traded in large quantities
Higher commodities profits increased first quarter profits.
default
to fail to pay interest or other money that is owed
As the company defaulted on the loan payments, legal proceedings were started.
diversify
to put money into a range of different types of investment to reduce risk
Fortunately, he diversified his investments by buying shares and property so he wasn't as badly affected when the property market crashed.
fund
money invested in a range of shares, bonds etc along with other investors money
The fund's performance is linked to the NY stock exchange.
holding
a specific investment
The company has many holdings in China.
index fund
(also known as a tracker) a sum of money invested in a stock index, for either an entire market or a segment of that market
The best that the average investor can do is buy an index fund and hold it forever.
maturity
the time when an investment becomes ready to be paid
We can offer investments with 2, 4, 10 or 25 year maturities.
plummet
to drop, decrease or fall very rapidly
The shares plummeted by 24% causing the shareholders to lose millions.
portfolio
a collection of different investments owned by a person or company
Many investors now try to build up portfolios with many types of investments.
resistant
not easily changed or damaged
Traditionally the market for gold has been resistant to financial downturns.
return
profit produced by an investment
The return on the investment was almost 11% which made it one of the most profitable.
rocket
to increase or rise quickly
House prices are rocketing which means that they are good investments.
slump
a period of low economic activity
Having a varied investment portfolio helped him to survive the slump.
startup
a business that has just started
Most startup's go bankrupt within the first two years.
volatile
likely to change suddenly and unexpectedly
Property has always been less volatile than shares.
yield
the total amount of profit produced by a business or investment
All investors are looking for maximum yield with minimum risk.
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