Investing
Investing is for ______ term while saving is ______ term
long, short
The market prices are falling & it's a good time to buy stocks at lower prices, this would be a ______ market
bear
Roth IRA you pay taxes _______
Traditional IRA you pay taxes ________
Reinvesting earned interest back into the principal to allow money to grow exponentially over time
compound interest
Ms. Jamison is new to investing and needs basic support at a low fee. She does not strive to beat the market and just wants help with what stocks to invest her money in. What should she utilize?
___________ interest allows you to earn interest not only on the amount you have saved, but also on the interest you've already earned
compound
The market is doing great and stock prices are high, this would be a ___________ market
bull
When should you start investing for retirement?
An index of 500 large cap companies chosen based on their size, industry, and other factors, used to represent the entire market
S&P 500
Anna is a very wealthy investor and is looking for a less risky way to invest her money. She could look into investing in a ________ for a company, where they will pay her back with interest.
If you are a shareholder in a public company, what are 2 benefits available to you?
1. you have partial ownership
2. you can receive dividends
2 ways to make money off a stock
1. dividend
2. sell it for a higher price than bought it for
_____________ _____________ is a government program that pools contributions from current workers to fund retirement support benefits to those who are eligible
A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date
bond
Eliot should have ________ which is the practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk.
diversification
Investors invest in high ________ assets to normally expect a high return
risk
A stock is a partial ownership in a company while a bond is a _______ from a company
loan
401k is set up by your _______ while an IRA is set up by __________
company (or job, work, etc), you (or yourself)
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
stock
Maya bought 10 shares of stock in StreamingVideoCo for $25 per share. Two months later she sold the 10 shares of stock for $90 per share. What was her profit or loss for the sale of her StreamingVideoCo stock?
650$ in profit
What is the historical rate of inflation? (hint: it is a range of %)
2-3%
Multiple bonds or stocks together, creating a diverse portfolio, are called _________ funds
mutual OR bond
match
A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor
Roth IRA - not taxed once you take the money out
Traditional IRA - money is not pre-taxed
401k - company opens it, company will match your contributions