Category 1
What is a stock (simply)
regular stocks represent ownership in a single company. Pieces of a company
What does your 401k account fund?
Retirement
True or false?
You can beat the market with no research and just pick whatever stocks you want.
False
What is the unique symbol associated to a stock called?
Ticker symbol
Mutual funds are managed by...
A fund manager
** Experts that control what stocks go in and out
What are your benefits as a shareholder?
You may receive dividends from the company, if the company pays them, and you have ownership of a portion of the company
How months should your emergency fund cover?
3 - 6 months
What is 1 of 2 ways that you can earn money from investing in a stock?
They receive dividends
They sell the stock at a higher price than what they bought it for
What kind of bias is this?
Investors tend to prefer what they know
Familiarity bias
What is compound interest
Money that you earn on top of your earnings
You put a certain amount of money into this type of account and agree to leave it there for a set time, like 6 months or 1 year or more or less.
Certificate of deposit
What is one question an investor should ask when deciding whether or not they would like to open a Roth IRA or a Traditional IRA?
Do I want to pay taxes now or later?
What is a big purpose for dollar-cost averaging?
Decrease your risk
A special amount of money you set aside just in case something unexpected happens!
Emergency fund
What is a portfolio?
A portfolio is like a collection or a mix of different investments you own inside your IRA
Why is it important to start investing early?
Because saving early allows your money to grow more over time through compound interest.
What is a bond?
A bond is a loan you give to an organization
What is the purpose of diversifcation?
Decrease your risk
What is purchasing power?
How much you can buy of something with a certain amount of money
____________ ________is the value of what you give up when you choose one investment over another.
Opportunity cost
What is an index fund
Index funds pool money to invest in a diversified portfolio of stocks tracking a market index
What are the 2 different types of IRA's?
Roth and Traditional
_____________ are payments a company gives to its shareholders from its profits.
Dividends
_________________ of stocks means the increase in the value or price of a stock over time.
Appreciation
What is one of the stock exchanges called?
NYSE
NASDAQ