Retirement Accounts
Vocabulary
Stocks
Bonds & Mutual Funds
Stock Quotes
100
An Individual Retirement Account to which you can contribute pre-tax or after-tax dollars, giving you immediate tax benefits if your contributions are tax-deductible.
Traditional IRA
100
What is the definition of liquidity?
Being able to convert something to cash without losing value.
100
Why do companies sell stock?
To raise money for their company to expand or to update
100
What is a bond?
A formal contract between a corporation or the government to repay borrowed money with interest at fixed intervals.
100
What is ticker/stock symbol for Coinbase Global, Inc.?
COIN
200
An Individual Retirement Account to which you contribute after-tax dollars. While there are no current-year tax benefits, your contributions and earnings can grow tax-free, and you can withdraw them tax- and penalty-free after age 59½.
Roth IRA
200
What does APY stand for?
Annual Percentage Yield
200
What is the name of the stock market that is located on Wall Street, New York City?
New York Stock Exchange
200
Which are riskier corporate bonds or government bonds?
Corporate
200
What was the price of COIN stock at the close of the previous day?
$204.77
300
A fund into which a sum of money is added during an employee's employment years and requires the employee to be vested. Payments are drawn to support the person's retirement from work in the form of periodic payments.
Pension
300
What is a stock?
A certificate that represents a piece of ownership in a company.
300
What is the name of the stock market that is electronic?
NASDAQ
300
What is a mutual fund?
A pool of many financial investments (i.e. stocks, bonds, and other financial assets) from many investors that is managed by a fund manager.
300
What is the highest and lowest that this stock has been for the past year?
Highest: $429.54
Lowest: $162.20
400
An employer-sponsored retirement savings plan that offers significant tax benefits. The employee sets a percentage of their income to be automatically taken out of each paycheck and invested in their account. Occasionally, the employer will offer the opportunity to match the employer's contribution.
401(k)
400
The process of allocating capital in a way that reduces the exposure to any one particular asset or risk. A common way to reduce risk by investing in a variety of assets.
Diversification
400
The market of rising prices; the stock market is doing well is called a _____ market.
The market of falling prices; the economy is doing poorly is called a _____ market.
Bull Market - Market is doing well
Bear Market - Market is doing poorly
400
Who can issue bonds?
Corporations and government (local, state, and federal).
400
Does Coinbase Global, Inc. pay a dividend to its shareholders?
No
500
A retirement plan (also called a tax-sheltered annuity) is a retirement plan offered by public schools and certain tax-exempt organizations. Employees save for retirement by contributing to individual accounts.
403(b)
500
What is a stock broker?
Someone who buys & sells stocks for a client.
500
What is the high-low rule for buying & selling stock?
Buy low, sell high
500
If you are a bondholder to a corporation or the government then you are also a _______ to that corporation or government.
creditor or lender
500
If you bought 42 shares of Coinbase Global, Inc. at the lowest price of the year and are selling it at its current price, would you make or lose money? How much?
You would make money (profit), $1,687.14