Billings
__________ ________ refer(s) broadly to any marketplace where the trading of securities occurs.
Financial markets
Which of the following information would I not expect to find on a company’s 10-K report?
a) Risks facing the company
b) Financial data from the previous fiscal year
c) The current stock price that the company's stock is trading at
c) The current stock price that the company's stock is trading at
This occurs when an individual erroneously believes that a certain random event is less or more likely, given a previous event or a series of events (think of coin flips):
Gambler's fallacy
Publicly traded companies have conference calls to investors about the company’s financials of the most completed quarter. This is the company’s ___________ date.
earnings date
If I want to see what the price of a stock has been over the past year, then I will look at this:_____ week range
52 week range
If you are addicted to our class Investopedia game, and you buy and sell stock frequently, often more than once a day, then you are probably a(n) _________ investor.
active investor
This is a non-retirement trading account that you must be 18 to open and has no limits on how much $ you can put into it: IRA, Roth IRA, standard brokerage account
Standard brokerage account
These financial vehicles are always made up of a pool of money collected from many investors to invest in stocks, bonds, etc.:
a) Index funds
b) Mutual funds
c) Municipal bonds
b) Mutual funds
True/false: A fiscal year for a company will always be different from a calendar year.
False- they can be different or the same
T-bills last for _____ year(s), max.
1 year
This government organization regulates securities markets and is seen as the police of the New York Stock Exchange:
The SEC (Securities and Exchange Commission)
This term describes the cluster of a company’s most important senior executives: _________-suite
C-suite
Beef, diamonds, and oil are examples of:
Commodities
You calculate this by multiplying the # of shares outstanding by the current price of a single share:
Market capitalization
I think that shares of Company XYZ will decrease in value, so I borrow shares of that stock and hope that the shares go down. This is an example of:
Short selling
Which of the following would not be considered a retirement account?
a) IRA
b) 401k
c) 529 savings plan
c) 529 savings plan
Which of the following is NOT under the jurisdiction of the Treasury?: The U.S. Mint, the IRS, the SEC
The SEC
True/false: An index fund is always a type of mutual fund.
False
Fitch’s, Moody’s, and S&P are examples of credit _______ agencies.
rating
True/false: The Federal Reserve and the Treasury do not really work together.
False- they do work together
Everyone in the class is buying Tesla or Apple in our Investopedia stock trading game, and Mr. Benz is advising against this because these students are displaying ________ mentality.
herd mentality
(The)_______________ is a global electronic marketplace for buying and selling securities.
Nasdaq
This is the senior executive responsible for managing the financial actions of a publicly traded company:
CFO (Chief Financial Officer)
What is the most useful class for real world application that is currently offered at Loyola Sacred Heart?
Real World Finance
This is a type of “investment vehicle” that involves a collection of securities (such as stocks, as an example), that are traded on exchanges just like normal stock:
ETF (Exchange Traded Fund)
This is a substantial sum of money or other assets that have been saved or invested for a specific purpose:
_______ egg
Nest egg
This is the amount of an asset or security that changes hands over some period of time, often over the course of a day:
Volume
For approximately how many months or years of expenses should you be able to cover with emergency funds?
3-6 months
_______ ___________ is an investment strategy that involves picking stocks that the rest of the stock market is underestimating.
Value investing
This is an individual or firm that acts as an intermediary between an investor and a securities exchange:
Broker
For both Roth IRAs and normal IRAs, this is the age you must reach before you can withdraw money that you have made in your account without incurring a penalty:
59 and 1/2
Not on test- This person that we have briefly talked about has held the positions of Secretary of the Treasury and Chair(wo)man of the Fed:
Janet Yellen
This person created a Terminal that bears their name that is used for advanced stock research in investment banks across the United States:
Michael Bloomberg
If a company is liquidated (think of bankruptcy, for example), then what is the correct order of who will get paid first?:
Common stockholders, preferred stockholders, bondholders (order these 3)
Bondholders, preferred stockholders, common stockholders
This is the opposite of buy-and-hold- this is an investment strategy when a market participant attempts to beat the stock market by predicting its movements and buying and selling accordingly:
Market ________
Market timing
A _____________ is a word that describes your collection of financial securities.
portfolio
These “financial vehicles” are always made up of a pool of money collected from many investors to invest in stocks, bonds, etc.:
Mutual funds
Which of the following would I NOT find on a company’s 10-K: Potential company risks, the names of corporate executives, the names of all the stockholders in the company
The names of all the stockholders in the company
When talking about bonds, this is a synonym for interest rate:
Coupon rate
This # (with 1 being “average” amount of risk), indicates how volatile a stock’s price is in comparison to other stocks in general:
Beta
This is the opposite of herd mentality- this is an investment style in which investors buy when others are selling, and sell when others are buying:
Contrarian investing
This is a distribution of a portion of a company’s earnings, decided by the board of directors:
Dividends
These retirement accounts always include a contribution of $ from your employer:
a) 529 savings plan
b) 401k
c) Roth IRA
b) 401k
__________________ is a risk management strategy that mixes a wide variety of investments within a portfolio.
Diversification
This is the main difference between Roth IRAs and normal IRAs:
a) Different contribution limits
b) A Roth IRA is for college savings, while a normal IRA is for retirement savings
c) With Roths, you are taxed when you put your $ into the account; with normal IRAs you are taxed when you take your $ out of the account...
c)
According to the SEC, companies that offer more than _________ million in shares to the public must file a 10-K
$700 million
Warren Buffet will read these in detail when researching whether or not to buy a certain stock:
10-Ks
The Chair of the Federal Reserve, arguably the most influential banker on the planet, is currently:
Jerome Powell
___________ ___________ proposes that psychological influences and biases affect the financial behavior of investors.
Behavioral finance (Investor psychology)
Who is regarded as the father of value investing?
Ben(jamin) Graham
If I work for a company and know that we have developed an effective Covid-19 vaccine, I decide to buy more stock in my company before the public knows this information, anticipating that the shares will increase in value. This is an example of:
Insider trading
Managing inflation is primarily the role of the following government organization:
The Federal Reserve
Which of the following people vote to elect a board of directors of a company?
a) Common stockholders
b) Preferred stockholders
c) Stockholders who receive a dividend payment
a) Common stockholders