PROF 5 - REVIEWER

Foreign Exchange (Forex)

The conversion of a country's currency into another based on supply and demand.

Stocks

Ownership shares in a company, representing a share of ownership and also known as equities.

Cash

Physical currency and money in a bank account that can be quickly accessed.

Bonds

A loan from an investor to a borrower, such as a company or government, with the investor receiving interest on the investment.

Money Market

An organized exchange market for short-term, high-quality debt securities with average maturities of one year or less.

Capital Market

A financial market for buying and selling long-term securities like stocks and bonds.

Direct Investing

Putting money directly into an investment, such as buying stocks or real estate.

Indirect Investing

Investing through intermediaries like mutual funds or exchange-traded funds (ETFs) instead of directly in individual assets.

Hybrid Financial Security

A single financial security that combines two or more different financial instruments, often combining debt and equity characteristics.

Investment Environment

The economic, political, and social conditions that affect the investment market and the performance of financial instruments.