The level of this is based on your living expenses, career risk factors and alternative sources of income.
What is the amount of Cash Reserves that I should hold?
100
The asset class where you own a piece of the business.
What is a stock / equity?
100
The term referring to not putting all of your eggs in one basket.
What is diversification?
100
The primary goal of diversification is to limit the impact of this on a portfolio over time.
What is Volatility?
200
Bonds that are issued by state and local governments, whose interest is basically federal tax-free are known as these.
What are municipal bonds? (munis)
200
A portion of a company's earnings that are paid out to its shareholders, usually on a quarterly basis.
What are Dividends?
200
The three major asset classes for investments.
What are cash, fixed income, and equities?
200
Name another asset category other than the three core components - cash, bonds and equities.
What is Real Estate? Commodities? Alternatives? Collectibles?
300
The fixed date on which a bond comes due and principal amount is returned to investor.
What is Maturity?
300
One of the two major stock indices that people look at to see how the market is doing.
What is DJIA? S&P 500?
300
A pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets, and is priced each day at the end of the day.
What is a Mutual Fund?
300
The process of constructing a portfolio of various investment components.
What is Asset Allocation?
400
Name two major bond credit rating agencies that evaluate an investor's chance of getting paid back.
What are Moody's, Fitch, S&P?
400
The three categories of stocks based on company size / capitalization.
What are Small-Cap, Mid-Cap, and Large-Cap?
400
The unique code that identifies a publicly traded investment.
What is a ticker?
400
The number of stocks in the Dow Jones Industrial Average (DJIA).
What is 30?
500
Generally, the prices of existing bonds will fall when interest rates do this.
What is rise?
500
BRIC is an acronym that stands for these four Emerging Market countries.
What are Brazil, Russia, India and China?
500
A type of fund that trades throughout the day (as opposed to a mutual fund which is valued at the end of the day).
What is an ETF / Exchange Traded Fund?
500
The process of realigning the weightings of of assets in a portfolio. Involves periodically buying or selling assets to maintain desired level of asset allocation.