Stocks and Bonds
Mutual Funds
Mutual Fund Distributions
Account Registrations
Retirement Plans
100
Equity is represented by this type of security
Stocks
100
What expense pays the portfolio manager's salary?
Management Fee
100
Are unrealized gains taxable?
No
100
Name the type of account where the minor is taxable
UGMA/UTMA
100
At what age can IRA owners begin taking distributions free of IRS penalty?
59 1/2
200
What is a bond?
A security that represents a credit/debit relationship between an investor
200
What are the three components that make up the formula for determining NAV?
Total Assets - expenses / outstanding shares
200
What two things make up a dividend distribution?
Dividends from stock and interest from bonds
200
Name one type of account that would have two people on file
Joint Tenant or 529
200
What is the current salary reduction limit for qualified retirement plans like the 401K?
16500
300
What factor affects the price of bonds?
Current interest rates
300
What is a mutual fund?
A pool of investors money to buy securities with a common investment objective
300
What makes a gain or loss realized?
Realized means the shares have been sold
300
How many people would typically sign a 529 form?
Two, the shareowner and the rep; the minor does not have to sign
300
What is the current maximum IRA contribution limit for an investor under age 50?
5000 per year
400
What are junk bonds?
Bonds with a low credit rating
400
What is an investment strategy and an investment objective?
Strategy is the plan to invest the assets in order to meet the goal (objective) of the fund
400
What happens to the NAV of a fund when a distribution is paid out?
It drops by the amount of the distribution
400
Name an individual that can sign the forms but may not be the owner of the account?
Power of Attorney
400
What is vesting?
The right an employee earns to receive employer contributions based on time of service
500
Name two differences between preferred stock and common stock
Common stocks have boting rights, preferred do not. Preferred received a predetermined dividend, common have a right to dividends, but it fluctuates. Common is riskier and prices fluctuate more
500
What are three primary investment objectives?
Growth, Income and Stability
500
What are three ways to make money on a mutual fund?
Dividends distribution, capital gain distributions, and NAV appreciation
500
On a 529 form for an ugma/utma account, in what section would you find the custodian information?
Addition Account Holder
500
Name two features of a Roth IRA that are different from a Traditional IRA for owners age 70 1/ 2 and older
Roth owners can continue to contribute after age 70 1 / 2, and are not required to take a minimum distribution
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