Stocks
A stock represents what?
Ownership in a company
When does everyone recommend you start saving for retirement?
As young as possible
The higher the risk, the higher the _____
Reward
A market that is described to be negative
Bear
What is purchasing an asset with the hope that it will produce income or a profit?
Investing
The abbreviation of the company that is selling their stock is what
Their stock symbol
The capital gains, interest, & growth of a Roth IRA can be withdrawn _____ in retirement
Tax-Free
You can reduce your risk in investing by _____
Diversifying your portfolio
A market that is described as being very positive
Bull
What is the percentage gain or loss on an investment over a specified period of time?
Rate of Return
Company A is raising $1 million at its initial public offering (IPO) by issuing 5,000 shares of stock. What is the value of each share?
$200
What type of retirement plan will some employers contribute matching funds towards?
401 K
It is recommended that you should be very _____ with your investments
Patience
Stocks are openly exchanged on what
The stock market
What is the value of an asset sometime in the future based on an assumed rate of growth?
Future Value
Julia buys a share of stock through her brokerage firm. What are the two ways that Julia could make money from owning this stock?
Dividends and Sell High
A source of income provided by the federal government when you retire
Social Security
What is considered to be the riskiest investment that you can make?
Stocks
NYSE stands for what
New York Stock Exchange
What is Interest that accumulates on the principal and the accrued interest.
Compound Interest
What is the equation for present value of a stock or investment?
FV=PV/(1+R) n
The date a loan or bond is due to be paid back to the lender/investor.
Maturity Date
Who is one person that can help with reducing your risk with your investments?
Financial Advisor
The increase in prices over a specific period of time, usually shown as a percentage, is called:
What is the present value given the following variables: Future Value (or FV) = $115, Rate of Return (or ROR) = 5%, and Number of Periods (N) = 3 years:
$99.34