Unit 18: Vocabulary

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