asset classes and financial instruments quiz

ASSET CLASSES AND FINANCIAL INSTRUMENTS QUIZ FULL

Before you invest, make sure you understand it well enough to explain it to someone else. Never invest in something you don’t understand. Can also include patents, trademarks and other forms of intellectual property. Examples: buildings, equipment, property, a car, investments, or cash. The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows and.

ASSET CLASSES AND FINANCIAL INSTRUMENTS QUIZ FULL

+ read full definition ?Ĥ. Choose your asset Asset Something of value that a company or an individual owns or controls. What other investments do you have already? How does this investment fit with your other investments? How will it change your asset mix Asset mix The percentage distribution of assets in a portfolio among the three major asset classes: cash and cash equivalents, fixed income and equities.What are the costs to buy, hold and sell the investment? And will you pay taxes on the money you earn?.Also, the period of time that an investment pays a set rate of interest. Internal or external (third-party) credit scores or credit ratings Risk ratings or classifications Financial asset type Collateral type Asset size. + read full definition ? Is this a short-, medium- or long- term Term The period of time that a contract covers. How long do you plan to invest Invest To use money for the purpose of making more money by making an investment.How much do you expect to earn on this investment? Is this realistic?.What are the risks of this investment? Are you comfortable taking these risks?.What are your goals? Are you looking for safety, income or growth from this investment? Or both growth and income?.How does the investment work? Do you understand the investment well enough to explain it to someone else? Chapter 2 - Asset Classes and Financial Instruments 2-6 4.+ read full definition, understand how it works and the risks involved. Before you choose an investment Investment An item of value you buy to get income or to grow in value. Once you know your asset mix, you can choose specific investments. The Canadian Money State of Mind Risk Survey 2014.International Organization of Securities Commissions (IOSCO) Calls for the delivery of an asset at a specified delivery or maturity date for an agreed-upon price, called the futures price, to be paid at contract maturity.Canadian Securities Administrators (CSA).A Set font size to normal A Set font size to large.

Asset classes and financial instruments quiz