Stocks Stocks Stocks
What do you call a portion of a company's earnings that's paid to shareholders?
Dividends
This is the time in life when the major source of income changes from earned income to unearned income.
Retirement
What do aggressive investors expect to be paid for the willingness to make an investment for which there is no guarantee of future success?
Risk Premium
Who elects the board of directors of a publicly traded company?
Common Stockholders
Other than stocks, what are two other types of securities?
At what age do most workers count on retiring?
67
When do you realize a capital gain?
When the investment is sold
What is the term used to describe the accumulation of excessive funds by intentionally spending less than you make.
Saving
What is the term to describe new stock offerings?
Initial Public Offering (IPO)
What is the best-known defined contribution retirement plan?
401(k) Plan
What investment philosophy sees gains through slow and steady growth in the value of their investments?
Moderate
What do we call a high yield, high risk corporate bond?
Junk Bond
Which type of stockholder has voting rights?
Common stockholders
When a retirement plan has been approved b the IRS, it is said to be what?
Qualified
What investment philosophy strives for a high level of return and accepts very high risk?
Aggressive
What is a highly liquid, relatively safe security with a very short maturity date?
Money Market Fund
What percent of earnings does the average public company pay out in dividends to their shareholders?
40-60%
What should you invest in your employer does not offer a retirement plan?
A Roth or Traditional IRA
What do you eliminate when you invest in a mutual fund rather than a single stock?
Random Risk
What are two of the three advantages of investing in a mutual fund?