Investing
Which distinguishes an ETF from a mutual fund?
-ETF prices are higher
-ETFs are traded like individual stocks
-ETFs are not regulated
ETFs are traded like individual stocks
What type of bond is it: the government borrows and uses tax revenue to pay the investors
Municipal Bond
What do you call the ratio of money gained or earned on investment?
Return on Investment (ROI)
Which statement is the most useful/informative?
"The Dow lost 71 points today."
"The Dow was down about three tenths of a percent today."
"The Dow was down about three tenths of a percent today."
GIVE ME PERCENTS!
The term for an asset losing value over time:
depreciation
____________ is the value of an asset minus any debt on that asset (begins with an "e")
equity
What are two characteristics of mutual funds?
-basket of stocks, spreads risk, priced at end of day, professionally managed, has fees
What is the name for 401k,
Social Security, Traditional IRA- pre tax &
Roth IRA- post tax?
Retirement Plans
Catch all term for all investments including stocks, bonds, mutual funds, ETFs, options, and commodities?
securities
What are the three C's of credit?
Character
Capacity
Collateral
Which is correct about stock market trends?
BULL=stocks down, BEAR=stocks up
BULL=stocks up, BEAR=stocks down
BULL=stocks discounted, BEAR=stocks overpriced
BULL=market closed, BEAR=market open
BULL=stocks up, BEAR=stocks down
The term for all of someone's investments:
Investment Portolio
What is it called when the economy is growing, unemployment is declining, inflation is stable:
peak ** trough ** expansion ** recession
expansion
Its the average price index of 30 selected industrial stocks, used as a measure of general market trends?
Dow Jones Industrial Average
Which is the least liquid investment?
stock, CD, bond, HYSA
bond
What happens to stock in a bear market?
declining prices
What is called when you spread your money out in order to manage risk?
Diversification
Which type of stock has voting rights?
common
uncommon
preferred
short
common
What is America's largest electronic stock market? Many technology stocks such as Apple, Microsoft and Yahoo are traded on this exchange.
NASDAQ
It is generally recommended that the ratio of monthly housing expense to gross income not exceed:
40% ** 28% ** 36% ** 20%
28 (front-end ratio)
This is the cost of operating a mutual fund or an ETF, and it is deducted based on and from the value of your investment:
-commission
-maintenance fee
-expense ratio
expense ratio
What you earn from stock and it's normally paid quarterly?
Dividends
What is called when someone borrows money to buy stock within their brokerage account?
buying on margin
What tracks the prices of 500 different stocks as a measure of overall stock market performance?
S & P 500
What is it called, when the amount of money collected is more than the amount of money spent?
Surplus