Business English Lesson – Advanced Level''''s archiveAsset Classes potx

Business English Lesson – Advanced Level's archive Asset Classes 1.. with this article about the different asset classes.. Asset classes are the categories that your different investmen

Business English Lesson – Advanced Level's archive

Asset Classes

1 Cathy Smart and the investment analysts at 401k

Forum help you get down to the with this article

about the different asset classes

baseline

basement

basics

basis

2 Asset classes are the categories that your different

investments into — such as cash, bonds, large-cap

stocks, small-cap stocks, and international stocks

fall

fan

sift

sort

3 Studies have shown that the key to successful investing

is to your wealth among different asset classes

diverge

expand

range

spread

4 Market capitalization (market cap) is a measure of the

size and value of a company; to determine this, you simply

multiply the number of the company's shares of

stock by the market price of one share

corporate

individual

open market

outstanding

5 Market capitalization is important because history has

shown us that the stocks of companies with different

market caps differently in terms of return and risk

behave

comply

gain

operate

6 Cap-size shift: mid-cap stocks may have once been

defined as large cap, but fell out of with investors

concern

favor

line

satisfaction

7 Mid-cap stock performance usually falls somewhere in

between the returns of their large- and small-cap

companions

counterparts

replicas

surrogates

8 However, mid- and small-cap stock returns tend to be

more than the returns of large-cap stocks

vaporous

volatile

voluminous

voracious

9 If a smaller company loses a few key executives, or if

the economy takes a for the worse, it only takes a

few nervous investors to cause the stock to drop

drastically

dive

path

step

turn

10 can reduce your risk and help protect your

investment: if one asset class in your portfolio is

performing poorly, there's a chance that another asset

class within your portfolio will be performing well

Departmentalization

Differentiation

Distribution

Diversification