Investments
What does it mean when you buy a share of stock in a company?
You own a tiny piece of that company.
What is the primary purpose of retirement planning?
To save and invest money so you can live comfortably when you stop working.
What are taxes?
Money that citizens must pay to the government to help fund public services.
what is the main difference between a "need" and a "want"?
A need is something you must have to survive, while a want is something you would like to have but can live without.
In the Harry Potter book and movie series, what specific object must a wizard or witch give to a house-elf to completely free them from servitude?
An item of clothing.
What is the main reason financial experts tell you to diversify your investments?
To lower your risk of losing all your money.
Why is it better to start saving for retirement when you are young rather than waiting until you are old?
Your money has more time to grow bigger over many years.
When you buy a toy or a snack at the store and the final price is a little higher than the price tag, what kind of tax are you paying?
Sales tax.
What does "scarcity" mean
There is a limited amount of resources, so people cannot have everything they want.
Which vital organ in the human body is the only one capable of completely regenerating itself after being partially damaged or surgically removed?
The liver.
What is a dividend?
A share of a company's profits paid out to its investors.
Instead of keeping all your retirement savings in a regular piggy bank or under your mattress, where should you put it so it grows?
In a special retirement bank account that invests your money in stocks and bonds.
What is "Income Tax"?
A tax taken out of the money you earn from working a job.
In investment management, what is the strategy of "tax-loss harvesting"?
Selling losing investments to intentionally trigger a capital loss, which can be used to offset taxable capital gains or ordinary income.
Which country in the world spans across the highest number of time zones, counting all of its overseas territories?
france
Which of these investments is generally considered the safest, but usually offers the lowest return over time?
A standard bank savings account.
If your job offers a "401(k) match," what does that mean they are doing for you?
They are giving you free extra money in your retirement account just because you are saving too.
What is the main purpose of "filing your taxes" every year by mid-April?
To check the math and make sure you paid the exact right amount of tax for the past year.
Why do high-income investors often buy "municipal bonds" issued by local or state governments, even though they usually offer lower interest rates than corporate bonds?
The interest earned from municipal bonds is typically exempt from federal (and often state/local) income taxes.
What was the primary purpose of the ancient Roman structures known as "aqueducts"?
To transport fresh water from distant natural springs directly into cities and towns using gravity.
What does it mean when people say the stock market is in a "Bull Market"?
Stock prices are rising and the economy is strong.
Why should you invest your retirement money into many different companies instead of putting it all into just one company?
So that if one company goes out of business, you don't lose all of your retirement savings.
What is a tax deduction
An expense that legally lowers the amount of your income that can be taxed, saving you money.
Why would an investor choose to do a "Roth IRA Conversion" (moving pre-tax traditional retirement funds into a post-tax Roth account) during a year when they expect their income to be unusually low?
Because they will pay the required income tax on the converted amount at a lower tax bracket today, locking in tax-free growth and withdrawals for the future.
In computer science, what does the term "Open Source" mean when referring to software like the Linux operating system or the WordPress platform?
The software's original source code is made completely public and free for anyone to view, modify, and distribute.