Vocab
What is it called when a company offers shares of their company for the first time to public investors?
Initial Public Offering (IPO)
What does “CFP” stand for?
Certified Financial Planner
What term is used to describe the process of creating a detailed plan for managing one's money, including income, expenses, and savings goals?
Budgeting
What part of the balance sheet includes property, plant, and equipment?
Assets
This investment approach involves spreading your money across a diverse range of assets to reduce risk. What is the commonly used term for this practice?
Diversification
What does CAPM stand for?
Capital Asset Pricing Model
What is the stock market index that represents the performance of the 500 largest U.S. companies?
S&P 500
In the world of personal finance, what three-digit number is commonly used to represent an individual's creditworthiness, ranging from 300 to 850?
Credit Score
Which financial statements provides a company’s assets, liabilities, and Stockholders’ equity at the end of the accounting period?
A balance sheet
What is the difference between a traditional IRA and Roth IRA?
Roth IRAs are taxes at whatever tax bracket you're in when you put the money in, Traditions are taxed at the bracket when you withdraw.
What does EBITDA stand for?
Earnings before interest, taxes, depreciation, and amoritization
In Wolf of Wall Street, what test did Jordan Belfort have to pass to become a stockbroker?
Series 7
What is known to be the largest cash outflow of a firm?
Taxes
What is the Sharpe Ratio used to calculate?
The risk adjusted return
What does IRA stand for?
Individual Retirement Arrangements
What does ETF stand for in Finance?
Exchange- Traded Fund
Who is the chairman of the Federal Reserve?
Jerome Powell
A measure to determine whether a company will be able to meet its long-term obligations.
Solvency
Cash- 20,000, Accounts Receivable- 5,000, Equipment- 3,000, Accounts Payable- 17,000, Stockholder’s Equity- 8,000. Compute the Current Ratio:
Current Assets/ Current Liabilities = 1.47
What tax-advantaged account, often sponsored by employers, allows individuals to contribute a portion of their pre-tax income towards their retirement savings?
A 401(k)
What does “REIT” stand for?
Real Estate Investment Trust
"The Oracle of Omaha" is a nickname often used to describe the CEO of Berkshire Hathaway?
Warren Buffet
What term is used to describe the interest rate at which a central bank lends money to commercial banks?
Federal Funds Rate
What are the three basic concerns of a financial manager?
Capital budgeting, Capital Structure, Working Capital Management
A ___ allows individuals who 70 ½ years old or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their RMD?
QCD