knowledge
There are many kinds of financial assets including savings, stocks, bonds, funds and so forth.
application
Describe the differences between different kinds of assets. Learn the prices of currently accessible kinds of financial assets.
knowledge
Interest is a return on the deposits in bank accounts. You can also get interest by owning company or government bonds, or lending money to others.
application
Calculate the interest income on a deposit in a bank account at rate of 1% interest per annum. Calculate the interest income on the bonds of the same value at rate of 5% interest per annum.
knowledge
When people buy a company’s stock, they are actually buying the ownership of the company. When it makes money, they may get dividends or profits brought by the rise of the stock price. The latter kind of income is called capital gain. When the company fails to generate profits, investors may suffer a loss in their investment.
application
Learn how to calculate dividends of a stock and how to judge the extent to which the stock has appreciated or depreciated over the past year.
knowledge
The price of a financial asset is determined by the interaction between its buyer and seller in the financial market.
application
Explain why the stock price may change when more individuals decide to buy stocks and when more companies issue new stocks to raise funds.
knowledge
The rate of return on financial investment, a percentage of the total amount of investment, consists of interest, dividends and appreciation in assets.
application
Calculate a series of rates of return on financial tools, taking into consideration the interest, dividends, rent and the expected time for appreciation.
knowledge
A financial risk refers to the fact that there are a series of potential returns on investment, including the likelihood of an actual loss. High-risk investments are more likely to get returns.
application
Compare the risk of depositing money at a fixed rate of return with the risk of buying stocks. Understand the differences between them.
knowledge
The rates of return on investment vary with the amount of money that takes risks. Generally, there exists a balance between the safety of investment and the expected rate of return.
application
Compare the rates of return on different kinds of investments, and speculate the risks of each investment demand.