Year 9 ECB Assessment Overview

These flashcards cover key concepts related to financial risk, reward, and the share market as outlined in the Year 9 ECB Assessment notes.

Financial Risk and Reward

The assessment topic focused on the relationship between financial risks and potential rewards in investing.

Three time frames for financial goals

Short-term, medium-term, and long-term time frames used to guide financial planning.

Asset classes

The four main types include shares, property, bonds, and cash.

Risk profiles

Categories of investor risk tolerance: aggressive, balanced, and conservative.

ASX

Australian Securities Exchange, the primary stock exchange in Australia.

Primary market

The market where new shares are issued and sold for the first time.

Secondary market

The market where previously issued shares are bought and sold among investors.

Diversification

The investment strategy of spreading investments across various asset classes to reduce risk.

IPO

Initial Public Offering; the process by which a company offers shares to the public for the first time.

Brokerage

The fee charged by a broker for facilitating the buying and selling of financial assets.

Blue chip shares

Shares of well-established companies with a history of stable earnings.

Speculative shares

Shares in companies that are considered high-risk or which do not have a consistent financial history.

Capital gain

The increase in the value of an investment or asset over time.

Dividends

Payments made to shareholders from a company's profits.

Uptrend

A market condition where the prices of stocks are rising.

Downtrend

A market condition where the prices of stocks are falling.

Sideway trend

A market condition where stock prices move within a horizontal range.

ASX200

A stock market index that measures the performance of the 200 largest companies on the ASX.

Nikkei

The major stock market index for Japan.

Dow Jones

A stock market index that indicates the value of 30 significant companies traded on the New York Stock Exchange.

FTSE

Financial Times Stock Exchange; a stock market index that represents 100 of the largest companies listed in the UK.