Stocks
What is a stock price?
A stock price is the current market value of a company's shares.
What is a bond's face value?
The face value is the amount the bondholder will receive from the issuer when the bond matures.
What are the types of CDs?
Traditional CD, No-Penalty CD, and Bump-Up CD.
How is interest on a savings account calculated?
Interest on a savings account is usually calculated using simple interest or compound interest.
How do mutual funds make money?
Capital Gains and income
What is the difference between a stock and a bond?
Stock represents ownership in a company, and shareholders may benefit from dividends and capital gains and bonds is a form of debt.
What is a bonds coupon rate?
The coupon rate is the annual interest rate paid by the bond issuer on the bonds face value.
What are the benefits of investing in a CD?
Guaranteed returns and higher interest rates.
Is there a minimum balance requirement for a savings account?
Some savings accounts have a minimum balance requirement which can range from low as $1 to thousand dollars.
What are the advantages of investing in mutual funds?
Accessibility, Diversification, and Affordability.
What are the different types of stocks?
Common stocks and preferred stocks.
What is the maturity date of a bond?
The maturity date is the date on which the bond issuer must repay the principal amount of the bond to the bondholder.
What is the term length for a CD?
One month to as long as 10 years or more
What is the difference between a savings account and a money market account?
Savings account offer lower interest rates and fewer restrictions on withdrawals and a money market account offer higher interest rates.
What are the different types of mutual funds?
Equity Funds, Money Market Funds, Sector Funds, and Index Funds
What is market capitalization?
The total value of a company's shares of stock.
How are bonds priced?
Bonds are typically priced based on their face value, but market conditions and interest rates affect their price.
What happens when a CD matures?
You can withdraw the principal and interest.
What fees are associated with a savings account?
Monthly maintenance fees and excess withdrawal fees.
What are the fees associated with mutual funds?
Management Fees
What is the difference between the primary and secondary markets?
Primary markets are issued in an IPO and Secondary markets are bought and sold between investors after the IPO.
What is a callable bond?
A callable bond is a bond that can be redeemed by the issuer before its maturity date.
What is the difference between a CD and a savings account?
The difference is that CDs have fixed terms and savings accounts are open-ended.
What is the difference between a regular savings account and a high yield savings account?
Regular savings offer a basic interest rate and high yield savings account pays a higher interest rate.
How are mutual funds returns taxed?
Dividends and interest income