General
an Index that tracks the 500 largest public companies based on their Market Cap
What is the S&P 500?
Most common type of bond in the world. Sold to the public by the United States federal government.
What is a Treasury Bond/Bill/Note?
The abbreviated name of company that is listed on the stock market.
What is a ticker symbol?
"IRA" stands for this.
What is an individual retirement account?
This financial ratio/indicator helps to determine the popularity of stock?
What is a P/E ratio?
The interest you earn on interest
What is compounding?
What is the coupon rate?
Payments by a company to its shareholders out of its profits
What is a dividend?
This type of tax shelter (retirement account) will tax your contributions but not when you withdraw the money for retirement expenses.
What is a ROTH IRA?
ratio is used to evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity.
What is debt to equity ratio?
spreading investments across different asset classes, industries, and geographic regions to reduce the overall risk of an investment portfolio
What is Diversification?
When a borrower cannot pay back their loan
What is default?
when a company divides its stock into multiple shares, effectively lowering the price of each share without changing the company's market value.
This type of retirement account is set up for you by a company you work for and will often match your contributions
What is a 401k?
Measures how much net income or profit a company generates as a percentage of its revenue
What is a profit margin?
how quickly a company can get their hands on cash or how quickly their investments can be converted to cash
What is liquidity?
If you own a $1000 bond that offers 6% interest, and the Federal Reserve raises rates, what will happen to price of your bond?
What is lower price?
the total dollar value of a company's outstanding shares at the present market price
What is Market Capitalization?
You will be financially penalized if you do withdraw from you retirement account before this
What is 59 1/2?
a method used to spread the cost of a tangible or physical asset, such as a piece of machinery or a fleet of cars, over its useful life.
What is depreciation?
Assets that are cash or that can be quickly turned into cash
What are current assets?
A bond fund is less risky than a single bond because of this reason.
What is diversification? OR
The fund invests in several different bonds to limit interest rate risk.
Something on those lines
refers to a company with a market capitalization value of more than $10 billion
What is a Large Cap stock?
If you have a traditional IRA you, when you retire the government requires you to withdraw a certain amount of money each year. This is called...
What is a Required Distribution?
a measure of a company's financial performance. It is calculated by dividing net income by shareholders' equity
What is ROE (Return on Equity)?