Investing
This is buying ownership of a company. You, the investor, does this through a brokerage account (like TD Ameritrade) and the New York Stock Exchange (NYSE). An example would be owning a small slice of the pie of Amazon
Stocks, Equities, Shares
This is the next best alternative, or the option you give up when making a choice.
Opportunity Cost
If you have a high credit score are you more likely or less likely to receive access to a loan or a line of credit?
More Likely
Less likely if you have a lower credit score
This type of stock does not typically offer a dividend.
It typically has higher volatility.
Common Stock
Tell me at least two types of insurance. If you can name more than two you will receive extra credit.
Health
Life
Disability
Auto/car
Home
Renters
Employer
Property (boat, jewelry, assets, etc.)
This is essentially a loan from you, the investor, to a company or the government. That entity pays you back after a period of time, with interest.
Bonds
The degree of ease in which assets can be sold.
Money supply
Cash flow
Liquidity
What are the three leading credit reporting agencies?
Transunion
Equifax
Experian
This type of stock does offer a dividend.
It typically has lower volatility and is more stable.
Preferred Stock
This is a “set amount of money” you pay at a “set time” (monthly, quarterly or annually) to keep your insurance coverage active and in place.
It is essentially a bill.
Insurance Premium
This type of bank deposit account is similar to a savings account in that it pays an interest rate for you keeping money in the bank. It has a minimum deposit amount, a period of time where you can't access the money, and a high fee if you withdrawal your money before the maturity date.
Certificate of Deposit (CD)
In investing, this is the liability of an investment to change rapidly and unpredictably, especially for the worse.
Severe ups and downs.
It can erupt or slide at any time.
Volatility
If you have a low credit score, you may have to get someone to help you obtain a loan.
What is the term for a person who takes responsibility for paying the loan or credit card balance in the event that the consignee is unable to do so.
Co-sign
Co-signer
This is when a publicly-traded company divides up its profits and, essentially, pays its shareholders just for owning shares in the company.
The distribution of cash to shareholders, either quarterly, bi-annually, or annually.
There are many different factors that will affect your auto insurance premium and policy. Tell me at least two. If you tell me more than two, you will receive extra credit.
The make/model of your vehicle
Your vehicle’s age and mileage
Your age
Your driving record (if you don’t have one, you are considered a greater risk because the company cannot know what kind of driver you are!)
How you use your car (for pleasure or to drive to work)
Where you keep your car at night
This is an investment strategy to mitigate risk by buying a variety of different investments. It's the "don't put all your eggs into one basket" strategy.
Hint: think of Churchland High School
Diversification
A type of investment fund.
A type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Mutual Fund
What happens at the end of the month when you fail to pay off your credit card?
You accrue interest on the amount owed.
You may also be subject to a late fee or penalty.
Your credit score will take a hit and go down some points.
This is a company that is not sold publicly on an exchange platform. You can't buy stock in this type of company.
Example: Chick Fil A
Private Company
This is the amount you must pay, yourself, before the insurance company pays. It is what you pay out of pocket before your insurance company gets involved and helps finance for damages.
What is the number reason as to why you should invest your money?
Money naturally loses value overtime because of inflation.
How long (many years) will it take to double an investment?
Hint: the answer has a number in it
Rule of 72
Divide 72 by the interest rate to be returned
This won't be on the final either but it is still important.
How long after you graduate college are you then required to start making payments on your student loans? It is a duration of a certain amount of months.
This is called a "grace period."
6 months
This won't be on the final, but tell me what IPO stands for.
Initial Public Offering
It is the initial publication of a company "going public" for individuals to invest in on a stock exchange.
When should you get a life insurance policy?
When you start a family and/or get married, so if you pass unexpectedly, then your family receives money from the insurance company so they can be financially stable without your source of income.