Money
Something that holds value.
What is money?
The act of putting money into a project or asset with the expectation of earning a profit or gain.
What is investing?
A security that represents the ownership of a fraction of the issuing corporation.
What is a stock?
A network of exchanges where investors buy and sell shares of publicly traded companies.
What is the stock market?
A mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities.
What is a tax?
Something that has intrinsic value, meaning that it has value even if it is not used as money.
What is a commodity?
Creating an account and supervising minors while they make investments.
What is a custodial account?
A contract between an investor and a borrower where the investor lends money to the borrower in exchange for interest payments.
What is a bond?
When people freely and willingly trade goods, services, or resources with each other, expecting to benefit from the transaction without coercion.
What is voluntary exchange?
A tax imposed on individuals or taxpayers in respect of the income or profits earned by them.
What is an income tax?
Name the three functions of money.
Quadruple points
Store of value, unit of account, and medium of exchange.
The investing strategy of putting different portions of investing budget into different financial securities.
What is asset allocation?
Investment portfolios that hold multiple financial assets (stocks, bonds and index funds for example) and pool money from investors to fund those assets.
What are mutual funds?
A tool that tracks the performance of a specific group of stocks, bonds, or other investments, acting like a thermometer for a market segment to show overall trends.
Quadruple points
What is a market index?
A tax paid on the wages and salaries of employees to finance social insurance programs like Social Security, Medicare, and unemployment insurance.
Double points
What is a payroll tax?
Name the four components of money.
Fungibility/fungible, durability/durable, portability/portable, recognizability/recognizable.
Name three investing platforms.
Double points
Vanguard, E Trade, S&P 500, Robinhood, Fidelity Investments, and Webull.
Low-cost investment funds (mutual funds or ETFs) that passively track a market index, like the S&P 500, by holding all or a sample of its underlying securities.
What are index funds?
Companies that sell shares to the general public on stock exchanges, allowing anyone to buy ownership stakes (stock) and trade them freely.
What are public companies?
Taxes imposed by federal, state, and sometimes local governments on the net income (profits) of corporations.
What are corporate taxes?
Name the five factors that affect money's value.
Double points
Supply and demand, interest rates, inflation, capital flow, and money supply.
Name all four investing strategies.
Triple points
Value investing, growth investing, income investing, and index investing.
A physical or digital document proving you own a specific number of shares in a company, acting as tangible evidence of your ownership stake.
What is a stock certificate?
Organized and regulated "places" (much trading today is virtual) where stocks and other types of securities are bought and sold.
Triple points
What are stock exchanges?
Name the five common business taxes.
Triple points
Income tax, self-employment tax, payroll tax, estimated taxes, and excise taxes.