Carl Icahn
Who is Carl Icahn?
A corporate raider and activist investor known for influencing company strategy and boosting shareholder value.
What is Social Security?
A government-run financial safety net for retirees, the disabled, and survivors.
What is a bond?
A loan to a government or corporation that earns interest.
What does buying a stock mean?
You own a share of the company.
What is a mutual fund?
A professionally managed investment pool of stocks and/or bonds.
What is Carl Icahn’s investment style called?
Activist investing.
What percentage of income is withheld for Social Security under FICA from both employee and employer?
6.2% each.
Name two types of bonds.
Corporate, municipal, or treasury bonds.
What does EPS stand for?
Earnings Per Share.
What is an index fund?
A mutual fund that tracks a specific market index like the S&P 500.
What is an “Icahn Lift”?
A stock price increase following Carl Icahn's investment.
What does the Social Security Trust Fund do?
Holds surplus funds to pay future benefits.
What is the relationship between bond prices and interest rates?
Inverse—when rates go up, bond prices go down.
Name a major stock exchange in the U.S.
NYSE or NASDAQ.
What is a benefit of mutual funds?
Diversification and professional management.
Name one company Carl Icahn has influenced.
Apple, eBay, Netflix, Herbalife, or Dell.
What is the full retirement age for most current students?
67 years old.
Define "coupon rate."
The annual interest paid to a bondholder.
What is the P/E ratio?
Price-to-Earnings ratio, a valuation metric.
Name a disadvantage of mutual funds.
High fees or lack of investor control.
What is Carl Icahn's core belief about corporate America?
That many corporate managers lack accountability and often run companies poorly.
BILL ACKMAN
What demographic challenge threatens Social Security?
Fewer workers per retiree are contributing to the system.
Why might an investor choose bonds over stocks?
For lower risk and steady income.
Why are stocks riskier than bonds?
They have higher potential returns but also greater volatility.
How does an actively managed fund differ from an index fund?
A manager chooses investments vs. passively tracking an index.