Financial Instruments and Investment Strategies Quiz

A financial asset representing partial ownership in a company.

Stocks signify ownership in a corporation, entitling holders to dividends and voting rights.

A debt investment where an investor loans money to an entity which borrows the funds for a defined period at a variable or fixed interest rate.

Minimizing risk by spreading investments across different asset types and industries.

Call options grant the holder the right, but not the obligation, to buy a security at a specified price within a specific timeframe; put options grant the right, but not the obligation, to sell a security at a specified price within a specific timeframe.

Investment funds that use various strategies to earn active return for their investors.

Physical assets such as real estate, commodities, or precious metals, which have intrinsic value.

ETFs are funds that trade on a stock exchange, just like ordinary shares, while mutual funds are not listed on exchanges and are bought and sold at the end of the trading day at their net asset value (NAV).

A financial contract obligating the buyer to purchase an asset or the seller to sell an asset, such as a commodity or financial instrument, at a predetermined future date and price.

Custodians are financial institutions that hold customers' securities for safekeeping to minimize the risk of theft or loss.

Bonds with lower credit ratings offering higher interest rates but with a higher risk of default.

A legal agreement to buy or sell a commodity or financial instrument at a predetermined price at a specified time in the future.