Investing Basics
What does it mean to buy a stock
What is buying ownership in a company
What do we call a market that is rising
What is a bull market
What is a budget
What is a plan for managing income and expenses
Define risk
What is the chance to loose money
What does IRA stand for
What is individual retirement account
What is a dividend
What is a payment made to shareholders from a company's profits
What is a bear market
What is interest
What is the cost of bowering money or the reward for saving
What happens to risk when potential return increases
What is risk increases
Which account would be best for free trading, with no tax advantages, but no restrictions
What is a brokerage account
What does diversification reduce
What is risk
What is the purpose of a stock exchange
What is to allow buyers and sellers to trade securities
Why is an emergency fund important
What is covering unexpected expenses without going into debt
What is safer, a government bond or a single company stock
What is a government bond
This account offers a “triple tax advantage” for medical expenses.
What is an HSA (Health Savings Account)?
Do stocks or bonds have higher risk but higher potential return
What is Stocks
What does IPO stand for
What is Initial Public Offering
What has the biggest impact on a credit score
What is payment history
An investment with big ups and downs in value has high___
What is volatility
This account allows investments for a minor until they reach adulthood.
What is a custodial account/custodial brokerage (UTMA/UGMA)
The difference between a common and preferred stock
What is common stock has voting rights and preferred stocks has priority for dividends
Why might a company chose to go public through an IPO
What is to raise capital by selling shares
What is compound interest
What is interest earned on the initial amount and previously earned interest
This happens when an investment looses value
What is depreciation
This retirement account is designed for self-employed individuals and small business owners.
What is a SEP IRA?