Financial Investing

Financial investment is the purchase of financial assets to increase income or wealth in the future. Investors must choose among investments that have different risks and expected rates of return. Investments with higher expected rates of return tend to have greater risk. Diversification of investment among a number of choices can lower investment risk.

Related Lessons on Virtual Economics 4.0

  • Internet Tools and Investing (Financial Fitness for Life: Theme 5, Lesson 22)
  • Investors and Investments (Learning, Earning, and Investing, Lesson 2)
  • What is a Bond? (Learning, Earning, and Investing: Lesson 6)
  • What’s the Cost of Spending and Saving? (Financial Fitness for Life: Theme 5,
    Lesson 20)
  • There is No Free Lunch in Investing (Financial Fitness for Life: Theme 5, Lesson
  • Financial Institutions in the U.S. Economy (Learning, Earning, and Investing: Lesson 11)
  • Researching Companies (Learning, Earning, and Investing: Lesson 13)
  • What is a Stock? (Learning, Earning, and Investing: Lesson 4)
  • Saving, Investing, and the Invisible Hand (Learning, Earning, and Investing: Lesson 17)
  • The Instruments and Institutions of Modern Financial Markets (Teaching Financial
    Crises, Lesson 7)
  • Understanding Financial Markets, 2007-2009 (Teaching Financial Crises, Lesson 8)

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