Basics of
Investing
Investing
What is a dividend?
This term describes a prolonged period of rising stock prices.
What is a bull market?
This strategy involves buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the price.
What is dollar-cost averaging?
This is the risk that an investment's value will change due to fluctuations in interest rates.
What is interest rate risk?
Name 6 of the 8 Bank of America Lines of Business
Retail Banking, Preferred Banking, Merrill, Private Bank, Business Banking, Global Commercial Banking, Global Corporate & Investment Banking, Global Markets
This is the term for spreading investments across various assets to reduce risk.
What is diversification?
This index is a widely used indicator of the performance of the 30 largest publicly traded companies in the U.S.
What is the Dow Jones Industrial Average?
What does the acronym ESG stand for, and provide a brief description for each.
The “E” in ESG means the environmental responsibility companies have, including energy use and how they manage their environmental impacts as stewards of the planet
Governance in ESG covers how companies are directed and controlled—and how leaders are held accountable. Increased transparency into corporate governance is quickly becoming an expectation.
The data disclosed in the social responsibility portion of ESG covers a wide range of topics from how companies are fostering people and culture to diversity statistics and community impact.
This term refers to the calculation that adjusts the return on an investment to reflect the effect of inflation.
What is the real rate of return?
What policy obligates a fiduciary to act in a sound and sensible manner with regard to the investing of assets, with a responsibility of providing diversification, protection of the principal, and the generation of growth and income.
What is the Prudent Investor Rule
What is qualified money vs non-qualified money?
What is
Qualified money refers to an investment made with pre-tax income (i.e. retirement plans) and are subject to contributions rules (and possibly distribution rules) due to to tax benefits. Non-qualified money refers to money already taxed.
A term used to describe a full-service broker-dealer. .
What are Wirehouses
This strategy focuses on investing in companies that pay high dividends to generate income.
What is income investing?
This type of analysis involves using financial metrics and models to determine the value of a security.
What is fundamental analysis?
When an investor sells securities at a loss and reacquires “substantially identical securities” within 30 days within 30 days before or after the loss is realized (total of 61 days).
What is a Wash Sale
This is a fund that pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities.
What is a mutual fund?
This term describes a sudden and significant drop in the stock market.
What is a market crash?
This is a strategy where an investor sells an asset with the intention of buying it back later at a lower price.
What is short selling?
This is a complex financial instrument whose value is derived from an underlying asset, such as a stock, bond, or commodity.
What is a derivative?
The risk associated with return due to negative conditions affecting one security, business, or industry.
What is Unsystematic Risk
This term refers to the total return on an investment, expressed as a percentage of the original amount invested.
What is a yield?
This is the price at which a buyer is willing to purchase a security.
What is the bid price?
This is the strategy of selling a stock when its price reaches a certain level, often to limit losses.
What is a stop-loss order?
The year did Bank of America acquire U.S. Trust making the bank the nation’s largest manager of private wealth assets?
a)1998
b)2006
c)1989
d)2003
What is b - 2006
1.Which is NOT one of Bank of America's Core Values?
a) Act Responsibly
b) Trust in the team
c) Deliver together
d) Realize the power of our clients
What is d - Realize the Power of our clients