Sydnie Uemoto Period 6 ?Questions? What is speculative stock? What are bonds? What are mutual funds? Answer • Speculative Stock- A stock with extremely high risk relative to potential return. • Bonds- A debt investment in which an investor lends money to an entity (corporate or government) that borrows the funds for a defined period at a fixed interest rate • Mutual Funds- A mutual fund is a professionally managed investment product that sells shares to investors and pools the capital it raises to purchase investments Risk Level • Speculative Stock- Great deal of risk • Bonds- Higher interest rate, more risky to be. • Mutual Funds- Risk level differs to what kind of fund it is $$$ • Speculative Stock: Initial Public Offering (small companies selling stock) • Bonds: The seller of the bond pays you • Mutual Funds: can generate income on a regular basis References http://dictionary.reference.c om/browse/Speculative+Sto ck http://financialdictionary.thefreedictionary. com/Bonds http://financialdictionary.thefreedictionary. com/Mutual+Funds http://financialdictionary.thefreedictionary. com/Speculative+Stock http://www.openira.com/Education_Center/3 c_Mutual_Fund_Risk.htm http://financialdictionary.thefreedictionary. com/IPO