Review5 - Indirectinvesting Directinvesting securities...

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Flash Cards Investing Alternatives Indirect investing The buying and selling of the shares of investment companies which, in turn, hold portfolios of securities. Direct investing Investors buy and sell securities themselves, typically through brokerage accounts. Examples of non marketable securities 1) Savings deposits 2) Certificates of deposit 3) Money market deposit accounts 4) US savings bonds Examples of money market securities 1) Treasury Bills 2) Negotiable certificates of deposit 3) Commercial paper 4) Repurchase agreements 5) Bankers acceptances Examples of capital market securities 1) Bonds 2) Common Stock 3) Preferred Stock Liquidity The ease with which an asset can be bought or sold quickly with relatively small price changes Savings deposits 1) Account at commercial bank or similar institution 2) Very safe; insured by the government 2) Highly liquid Certificates of deposit 1) Account at commercial bank or similar institution 2) Fixed maturity 3) May be penalty if you withdraw money before maturity 4)Very safe; insured by the government 5) Typically offers higher yields than savings accounts Money market deposit accounts 1) Account at commercial bank or similar institution 2) Similar to savings accounts but can make a limited number of payments by check. 3) Very safe; insured by the government US savings bonds 1) Debt issued by the US government 2) Cannot be sold or transferred to others 3) Designed for small investors Treasury Bills 1) Debt issued by US government 2) Issued at discount to face value 3) Very safe asset 4)Short maturity
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Review5 - Indirectinvesting Directinvesting securities...

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