Investing IQ
This is the possibility that the investment will fail to pay a return.
What is Financial Risk?
This is another term for a shareholder.
What is a stockholder?
This is the time in life when the MAJOR source of income is no longer from a job.
What is retirement?
This investment philosophy accepts very little risk and are typically rewarded with low rates of return.
What is a conservative philosophy?
Mutual funds are great investments for many reasons. This one of the advantages of mutual funds.
What is diversification?
(Or professional management or liquidity)
This is a collection of investments assembled to meet your investment goals.
What is a portfolio?
This is the group of shareholders who have voting rights.
Who are common stock holders?
Employees that work at these types of companies are more likely to be covered by pension plans.
What are large companies?
This is the investment philosophy that most of us fall into. It is the philosophy that seeks gains through slow and steady growth.
What is a moderate philosophy?
This would be a great option for you if you want to invest in highly liquid, safe securities with very short maturities.
What are money market funds?
This is the accumulation of excessive funds by intentionally spending less than you earn.
What is saving?
This is what you are receiving when you get a portion of a company's earning as a shareholder.
What are dividends?
This is the best-known retirement defined-contribution plan.
What is a 401(k)?
If you are an aggressive investor, you might consider investing in these high yield, high risk corporate bonds.
What are junk bonds?
This is what you are reducing when you invest in a mutual fund rather than a single stock.
What is random risk?
These are the three examples of securities that we discussed in class.
What are stocks, bonds, and mutual funds?
As a common stockholder, this is the group of people you are responsible for electing.
What is the board of directors?
This is what you should invest in if your employer does NOT offer an employer-sponsored retirement plan.
What is a Roth or Traditional IRA?
This type of investment philosophy is the the people who strive for a high level of return while accepting a high level of risk.
What is an aggressive philosophy?
This is the name of the federal corporation that insures funds in a money market account at your depository institution.
What is the FDIC?
These types of industries, such as airlines and hotels, perform best when the economy is doing well.
What are cyclical industries?
This is the term to describe new stock offerings.
What is Initial Public Offering or IPO?
This is the age that most workers count on retiring.
What is 67?
When you have an aggressive philosophy, you expect to be paid this because you are willing to make an investment for which there is no guarantee of future success.
What is a risk premium?
When I want to access my funds in this type of investment, I can do one of the following: take a set dollar amount each month, cash in a set number of shares each month, or take the current income as cash.
What is a mutual fund?