About This Chapter
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
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Finance 303: Financial Institutions & Markets course
- Foundations of Finance & Investment
- The Federal Reserve System & Financial Institutions
- Interest Rates, Rate Changes, & Risk Structure
- Understanding Financial Markets
- Equity Ownership & Risk Exposure
- Calculating Prices & Yields
- Principles of Financial Statement Analysis
- Financial Risk Management & Mitigation
- Financial Regulation & Ethics