Stocks
A question you should ask before purchasing a stock
"How does this company make money, and do I understand its business model?".
Name for the amount you're lending and expect to be paid back
What is Par Value
Balanced mutual funds contain a combination of ____ and ____
What is Stocks and Bonds
The goal of an active fund manager is to ____ the market
What is Beat
These charges may include management costs, marketing expenses, and administrative costs.
What are fund fees or expense ratios?
Divide current price of a stock by its earnings per share to get the ________
What is Price-to-Earnings Ratio
Type of bonds issued by local governments to supplement tax revenues or to pay for public projects
What is Municipal Bonds
You can find all the details about a mutual fund - including investment strategy, risk profile, performance history, management and fees - in a document called the ______
What is Prospectus
Index funds are passively managed, They seek to _____ the performance of their benchmarks (such as S&P 500) instead of outperforming them
What is Replicate
The fees you're charged for moving your money from one fund to another fund offered by the same investment company
What is Exchange Fees
This represents ownership in a company and may provide dividends or capital gains.
What is a stock
It's important to research a bond issuers' ____ risk
What is Credit Risk
When a mutual fund's stocks or bonds pay income from dividends or interest, the payments to shareholders are know as _______________
What is Income Distributions
Mutual funds typically trade at this time of day rather than continuously like stocks.
What is at the end of the trading day?
This term refers to spreading investments across different companies or industries to reduce risk.
What is diversification?
Bond interest payments are called the bond's _____
What is Coupon
When the mutual fund has capital gains from selling investments in its portfolio at a profit, the payment to shareholders is called _________
What is Capital Gains Distributions
Mutual funds that change their investments over time to meet goals you plan to reach at a specific time, such as retirement
What is Target-Date Funds
Stocks are commonly traded on these financial marketplaces such as the NYSE or NASDAQ.
What are stock exchanges?
One popular way to manage one aspect of interest rate risk - the risk that your bond will mature when rates are low and you'll have to buy new bonds paying lower yield - is to stagger ______ of your bonds
What is Maturity Dates
A ____ mutual fund is managed by professionals who decide which underlying investments to choose for its portfolio
What is Actively Managed
Mutual funds that invest in short-term debt, such as Treasury bills
What is Money Market Funds