Unit 18: Vocabulary

To pass this unit, please study the 20 vocabulary words below.
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blue-chip
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
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
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
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
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
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
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
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
a specific investment
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The company has many holdings in China.
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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
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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
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
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
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
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
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
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
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
a business that has just started
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Most startup's go bankrupt within the first two years.
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volatile
likely to change suddenly and unexpectedly
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Property has always been less volatile than shares.
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yield
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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