Vocabulary
Types of Risk
Miscellaneous
Retirement
Bonds
100
Shares of ownership in a corporation
What is Stock
100
The risk that prices will rise faster than the return on investment.
What is inflation risk
100
The agency that regulates the U.S. securities market.
What is the Securities and Exchange Commission (SEC)
100
Tax deferred retirement plan that can be matched by the employer
What is a 401K
100
A tax-exempt bond issued by local or state govenments
What is a municipal bond
200
The ability to turn an asset into cash
What is liquidity
200
The chance that some law or policy will affect the value of an investment
What is political risk
200
The central bank of the United States, who sets economic policy & prints & destroys money.
What is the Federal Reserve
200
Tax-deferred plan for employees of non-profit organizations
What is 403 (b) plan
200
A risky bond with a rating of BB or below.
What is a junk bond or speculative grade bond
300
A period of time when stock prices are steadily increasing.
What is Bull market
300
The chance that factors that affect a particular type of business (i.e. oil companies) will affect the value of the investment.
What is Industry risk
300
Agreement to buy or sell a commodity at a set price on a set date in the future
What is futures contract
300
Tax deferred retirement account that you must draw out of when you turn 70 1/2 or there is a penalty.
What is traditional IRA
300
A bond with a rating of BBB and above.
What is an investment grade bond
400
Saving and investing the same amount on a regular basis, regardless of market conditions
What is dollar cost averaging
400
Potential change in the value of a particular investment.
What is investment risk
400
Holding a variety of investments to reduce risk
What is diversification
400
Tax deferred retirement account that you don't have to pay taxes on the withdrawals in retirement.
What is a Roth IRA
400
Bonds that sell for MORE than their face value are said to sell at ...
What is a premium
500
A debt instrument issued by a corporation requiring them to pay interest plus principal to the holder at maturity.
What is a bond
500
Risk that events will impact a specific company's value.
What is stock risk
500
A mutual fund that invests in stocks that provide steady and reliable dividends.
What is an income mutual fund
500
When you should start saving for retirement.
What is 'as soon as possible!'
500
Bonds that sell at LESS than their face value are said to sell at ....
What is a discount