Stocks
When you buy a share of stock, what are you actually buying?
A piece of ownership in that company.
Are mutual funds the same as ETF's?
Bonus 100 points if you can tell me why they are the same or why they are different.
No
This is an employer sponsored retirement plan, with your contributions often "Matched" by your employer
401(k)
What is an estate?
The collection of assets and liabilities a person leaves behind when they die.
Where in NYC is the NYSE (New York Stock Exchange) located?
Wall Street
An IPO is an example of what kind of market?
When you invest in a mutual fund, where are the fees you pay to invest in the fund going to?
Financial advisors, accountants, fund managers, etc.
This type of individual retirement investment account allows you to contribute after you've paid your tax, so that when you withdraw you don't pay the tax then, since you've already paid it. (Not tax deferred)
Roth IRA
What are wills used for?
To legally outline how and to whom assets will be distributed, and how liabilities (debt possibly) will be settled/paid off once the will/estate owner dies.
Explain how inflation affects our investment returns?
As inflation goes up, our dollar has less "buying power" so if our rate of return is lower than the rate of inflation, we are effectively losing money.
Stock splits occur when the prices of a single share of a particular corporation become ________
Too high
Can mutual funds be traded on a securities exchange such as the NYSE?
No, you must invest directly through an investment firm.
What is the term for when you move the balance of one employers 401(k) you have into a new 401(k) with your new employer once you switch jobs?
Rollover
What is a healthcare directive? (Also called a Living Will)
Legal instructions as to the medical decisions a person wants made in the event they are not physically or mentally able to themselves.
What does volatility mean in the context of investments?
A measure of how quickly/sharply prices of a stock go up or down.
Our two largest securities exchanges in the USA are?
NYSE and NASDAQ
What is the term (Vocab term) for the overall value of a mutual fund?
Hint: It's the fund's assets minus its liabilities
NAV (Net Asset Value)
This is a tax deferred retirement investment account offered by employers in the non-profit field.
403(b)
What is the name of the court where disputes and resolutions regarding wills are made?
Probate Court
Which market's collapse ultimately contributed greatly to the great recession of 2008.
Housing Market (The housing bubble burst thanks to the garbage mortgage backed securities that brokers were peddling)
What is the name of the federal government agency that regulates securities exchanges?
SEC (Securities Exchange Commission)
Name at least one type of mutual fund category discussed in class, and in the textbook readings?
Income funds
Balanced funds
Growth funds
Specialized funds
Should you use social security as your main retirement strategy when you retire? Why or why not?
No, social security payments are meant to be supplementary money for if your main retirement account won't cover your needs/wants as a retiree.
What is the term for a legal amendment/change made in the details of a will?
Codicil
Daily Double!
Name all 3 of the major precious metals investors invest in, and track the prices of?
Hint: Two might be obvious but the third you'll really need to think on our notes.