Wealth
Wealth can be described as
The ability to live well based off of your assets
Equity represents ___
Ownership in a company
A bond is a ___, backed by a contract, that has been converted into a tradable security
Loan
Crypto is a __ type of investment
Speculative (other answers may be accepted)
Real estate is similar to equities and bonds as its value is based on
Cash flows
Most business owners are this age when they start their company
Over 40
Stocks are valued based on the ____ they are expected to generate.
Earnings
A bond is labeled “____ ____” because the contract terms and amounts are fixed.
Fixed income
Blockchain is an example of this type of ledger
Distributed ledger
When a property is bought with leverage, the investor can see __ returns relative to an all-cash purchase
Higher
Small businesses account for ___% of all U.S. businesses
99.7%
Returns from equities are derived from (name both)
Dividends and growth in the stock price (capital appreciation)
In the event of bankruptcy, these investors get paid out first
Bond holders
Country that made Bitcoin legal tender in 2021
El Salvador
Three things that drive real estate prices are
Inventory, Interest Rates & Sentiment
This is one factor that influences how you get paid
Having in-demand skills/knowledge, contributing a high level of production to the company, attractive compensation structure, and more
Companies issue equity for these reasons (name 2)
Fund growth/new business plans, pay down debt, acquire/merge with other companies
Asset back securities can be backed by (name 3)
Mortgages, student loans, auto loans, credit card debt
This type of crypto maintains a price of approximately $1 USD
Stable coin
These three costs make up the cash outlay for a property
Down payment, closing fees, and repairs
The 8 possible paths to wealth include
Stocks, bonds, crypto, real estate, talent, education, earning a high salary, and owning a business
Name the 3 most common U.S. indices used as benchmarks (hint: Morning Brew Markets)
Nasdaq, S&P 500, Dow (Dow Jones Industrial Average)
The current 10 year Treasury yield is roughly
4%
Name 5 cryptos
Answers will vary
Growth in housing ownership is encouraged by the government by allowing
Mortgage interest to be deducted from income to lower taxes