Traded on a centralized exchange, whether physical or electronic. Brokerage arrangement: Brokers find buyers and sellers, they put them in touch with each other, and charge a commission.
What are stocks?
100
Variation in return is explained almost entirely by this
What is asset allocation
100
The acronym for this is AGI.
What is adjusted gross income?
100
$5500
What is 2014 Traditional and Roth IRA contribution limit (under the age of 50)?
200
This type of company may offer its shares for sale to the general public, often through a stock exchange.
What is a publicly traded company?
200
These contain equity-like risks and default more frequently than government or municipal bonds.
What are corporate bonds?
200
Income that is subject to tax at using the IRS tables/brackets.
What is ordinary income?
200
This form provides details on IRA contributions
What is the 5498?
300
Finding the money needed to fund an activity
What is financing
300
Tilting toward this can enhance return.
What is small and value
300
This is paid from mutual funds when fund managers sell securities owned by the fund.
What are capital gain distributions?
300
This is the preferred cost basis method for Buckingham clients.
What is specific identification?
400
One example is selling a stock (T+3) and buying a mutual fund (T+1) with the proceeds on the same day is
What is a Reg-T violation?
400
This can be easily minimized by holding mutual funds instead of stocks.
What is company-specific risk.
400
A return of the original investment that is not taxable.
What is return of capital?
400
You cannot contribute to this if you make more than $191,000 (married, fling jointly)
What is a Roth IRA
500
(# of Shares Outstanding) x (Price per Share)
What is market cap?
500
Unlike passively managed mutual funds, actively managed funds have these fees which negatively impact performance.
What is 12b-1 fees?
500
This can benefit the client because the tax paid on gains to liquidate the fund can be less than the net benefit of receiving the distribution.
What is sell funds at year-end before capital gain distribution record date?
500
Individuals use the 1099-R and Form 5498 to complete these forms which are filed with their Form 1040.