WELCOME Financial Terms Simplified Welcome to this simplified guide about the financial terms.

In this presentation, we have tried to explain the important financial terms in the simplest manner.

What is Economy? Economy is concerned with

the allocation of resources. It takes into account the following activities of limited goods and services.

Production

Distribution

Consumption

Economy

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Income Explained Income is the compensation that

we receive for using our skills to produce goods, or for providing a service.

Income also includes the money that is generated by investing capital.

Most people earn their income by working for a government or a private firm.

A business earns income by selling its finished goods or services.

In most countries, individuals and businesses receive their income after it is taxed by the government.

Income

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Factors for Investment Strategy Investment strategy can be

thought of as the plan of action that an investor has for guiding his investment decisions. An investment strategy depends on a lot of factors such as:

Risk Tolerance

Individual Goals

Access to Capital

Investment Strategy

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Precious Metals are Precious!

Precious metals are rare metals, which have high economic value. Precious metals are seen as an asset by most investors. Examples of precious metals are:

Gold

Silver

Platinum

RhodiumPrecious Metals

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The Value of Real Estate Real estate denotes

property including land and any construction that is permanently fixed to it. It is broadly classified as:

Residential – e.g. condominiums, bungalows

Commercial – e.g. office buildings

Industrial – e.g. Factories The value of real estate

mostly depends on local factors such as crime rate, employment opportunities, climate, recreational places, etc.Real Estat

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Retirement Benefits Retirement is the age when

an individual ceases to work, and withdraws from his occupation.

Usually, the retirement age in most countries of the world is in the range of 60 to 70 years.

After retiring, most people become eligible for private or public pension benefits.

Developed nations have certain schemes to assist the retirement benefits of retirees.

Retirement

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The Allure of Stock Market Stock market is the place

where stocks or shares or publicly held companies are exchanged. A stock market is considered as one of the most important indicators of the health of an economy. Stock market can be broadly classified as:

 Primary market – new issues are sold through IPOs, and bought by institutional investors.

Secondary market – stocks are bought and sold between investors.

Stock Market

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The Importance of Wealth Creation Wealth creation is

important for securing your financial future. Wealth is created when an individual acquires assets, resources, or income.

Due to the effect of inflation, wealth creation is important for every individual.

Wealth creation is prudent as the economic catastrophes have a massive effect on employment and wages.

Wealth Creation

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Thank You! Thanks for reading

this guide. We hope that this guide was able to help you out with some of commonly used financial terms.

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