Ch 5: Basics of Financial Investments

About This Chapter

This chapter can help anyone who needs to review the basics of financial investments for any purpose, including test preparation, personal finance and professional development. Use any Internet-connected device to access this collection of engaging lessons and fun practice quizzes.

Basics of Financial Investments - Chapter Summary

Complete this study guide chapter to review the fundamentals of financial investments. These engaging video lessons offer easy-to-understand definitions and illustrative examples of basic financial investment concepts. You'll review money market funds, bond types, commodities, investment opportunities and much more. In addition to the lesson content, this chapter comes with self-assessment quizzes that help you see how well you understand these financial investment topics. You can access these resources any time that's convenient using your computer or mobile device. When you're finished working through the chapter, you should be equipped to:

  • Identify investment opportunities in exchange-traded funds and mutual funds
  • Compare types of money market funds
  • Differentiate between corporate, treasury and municipal bonds
  • Recognize the differences between Moody's and Standard and Poor's bond ratings
  • Define the concept of a commodity
  • Calculate return on investment

9 Lessons in Chapter 5: Basics of Financial Investments
Test your knowledge with a 30-question chapter practice test
Investment Opportunities in Mutual Funds and Exchange-Traded Funds

1. Investment Opportunities in Mutual Funds and Exchange-Traded Funds

Investing in the stock market is not limited to individual stocks. Investors can also invest in mutual funds and exchange-traded funds. In this lesson, you'll learn about these opportunities, as well as their advantages and disadvantages.

What Are Money Market Funds? - Definition, Types & Examples

2. What Are Money Market Funds? - Definition, Types & Examples

Do you want to earn a higher rate of return on your investment but want to do it in a safe and less risky way? Read on to find out more about money market funds and how they can help you earn a higher rate of return in a low risk way.

What are Corporate Bonds? - Definition & Examples

3. What are Corporate Bonds? - Definition & Examples

In this lesson, we'll explore corporate bonds and how they relate to an investor's risk tolerance. You'll also learn about the advantages and disadvantages of corporate bonds.

What Are Treasury Bonds? - Definition & Rates

4. What Are Treasury Bonds? - Definition & Rates

In this lesson, you'll learn about treasury bonds, which are basically a way for governments to borrow money. Treasury bonds are considered low risk investments, and therefore, pay a lower yield to investors.

What Are Municipal Bonds? - Definition, Types & Examples

5. What Are Municipal Bonds? - Definition, Types & Examples

This lesson will define municipal bonds, a type of debt vehicle issued by state and local governments. The two types of municipal bonds will be explored, and examples will be given.

Moody's vs. Standard & Poor's Bond Ratings

6. Moody's vs. Standard & Poor's Bond Ratings

Moody's and Standard & Poor's are bond rating organizations that evaluate the credit worthiness of individual corporate and government bonds. This lesson will familiarize you with the basics of their bond rating systems.

What Are Commodities? - Definition, Types & Examples

7. What Are Commodities? - Definition, Types & Examples

This lesson explains what a commodity is, how the products are similar and how the pricing relates to commodities. Several examples of commodities are included.

Return on Investment: Definition, Formula & Example

8. Return on Investment: Definition, Formula & Example

Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.

Required Assignments Reminder

9. Required Assignments Reminder

Sorry for the interruption to your course progress! We wanted to make sure you knew this course has a written assignment requirement in order to be completed. Read on to learn where to find these assignments and how to submit them.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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