Question

1.1 State the term that best describes each of the following statements:

1.1.1 Objectives that one aspires to in the early stage of one’s life cycle.

1.1.2 The stock/shares of the largest and most consistently profitable companies.

1.1.3 The difference between the total assets and total liabilities of an individual.

1.1.4 The profit from selling one’s assets, e.g. shares in a company, at a higher price than the price for which it was purchased.

1.1.5 The technical term for the general rise of prices in the economy.

1.1.6 The portion of your medical bill that your medical aid scheme requires you to pay out of your own pocket for a medical visit or treatment.

1.1.7 The first time a company offers shares to the investing public.

1.1.8 The value, at the time of your death, of your assets minus your liabilities.

1.1.9 The person that has the ability and qualifications to direct your financial future.

1.1.10 The rate of interest that major banks charge their most creditworthy corporate customers.

Answer 1

1.1.1) Accumulation: Every individual will have the objective to accumulate more money to save in the early stages of life so that they can have more wealth.

1.1.3) Net worth is called as total assets minus total liabilities of an individual.

1.1.4) Capital gain is the profit earned from selling a investment at higher price than purchase.

1.1.5) Inflation is called as rise in prices of economy.

1.1.7) Intial public offer is the public offer made by the comapnies for the first time to the public to buy their shares

1.1.9) Financial advisor is the person who has the ability and qualification to direct your financial future.