Banking
One of the factors people use when choosing a bank.
What is location, convenience, rates, or fees?
A Share of ownership in a company
What is a stock?
Examples of this type of expense include mortgage/rent, insurance, real estate taxes, and vehicle registration.
What are fixed expenses?
A specialized segment of banking that focus on raising capital for business, people, governments, etc
What is investment banking
Allows you to borrow money against your investment as collateral
What is a line of credit?
The percentage that represents the cost of borrowing money or return earned
What is interest Rate
This investment vehicle allows you to receive interest payment and principal is return at maturity
What is a bond?
The easiest type of expenses to adjust.
What are flexible/variable expenses?
A market condition where securities prices are falling, typically defined as a decline of 20% or more from a recent peak
What is a bear market?
This is the best way to protect your credit rating.
What is pay your bills on time?
When saving money for a longer period of time, but you would still like easy access in case of an emergency, this type of investment typically has better yielding interest rates than a standard savings account.
What is a CD or certificate of deposit?
A payment a company makes to its shareholders as a way to share a portion of its profits. Often offered as a cash distribution.
What is a Dividend?
Money that is owed
What is debt?
When possible, it is better to buy a home rather then rent because purchasing real estate is considered an investment. As you pay off your mortgage you build this.
What is equity?
When a company takes over another. Morgan Stanley _______ E*TRADE in 2020.
What is acquired?
Interest earned on both the principal and the accumulated interest.
What is compound interest?
During a _____ a company goes public and its stock becomes available to buy.
What is an IPO?
Expenses are recorded on this (like the income statement) and impact a business's profitability.
What is a financial statement?
Offers higher interest rates than traditional savings accounts while keeping your money accessible
The best time to begin saving.
What is As Soon As Possible?
This happens when you write checks for more money than is in your account.
What is an overdraft?
An account used to purchase stock on the exchange which is list the price (the bid) and the selling price (the offer)
What is a brokerage account?
Calculate this by taking the total amount of money and assets you have and subtracting the total amount of money you owe.
What is your Net Worth?
An investment portfolio that spreads assets across different asset classes, industries, and geographies to reduce overall risk. This means instead of putting all your investment eggs into one basket, you allocate your money across a variety of investments like stocks, bonds, and other securities
What is a diversified portfolio?