Markets and Securities
Stock market index tracking the performance of 500 of the largest publicly traded companies in the United States
What is the S&P 500
These goals should be used when prioritizing a PFP (Personal Financial Planning) process.
What are SMART goals
When you don’t want to try and beat the market, you would invest in this type of fund.
What is an index fund
This investing strategy aims to maximize after-tax returns by minimizing tax liabilities.
What is Tax-Efficient Investing
These securities are issued by the federal government and reach maturity in 20 or 30 years.
What are Treasury Bonds
This trading strategy involves borrowing shares from a broker at a higher price and selling them instantaneously with the hope that they can later repurchase them at a lower price to return to the broker.
What is a Short Sale
This document serves as the roadmap for a client's strategy, including specific goals, risk tolerance, and time horizons
What is an Investment Policy Statement (IPS)
Not putting all your eggs in one basket is the basic theory behind this common investment philosophy.
What is diversification
This investing strategy focuses on identifying and acquiring stocks that are undervalued.
What is value investing
State and local governments issue these debt securities.
What are Municipal Bonds
This legislative act broadly defines securities
What is the Securities Act of 1933
This term refers to the period of time an investor expects to hold an investment before needing the money.
What is the Investment Time Horizon
Selling overperforming assets and buying your underperforming ones is also known as this practice in portfolio management.
What is rebalancing
This investing strategy involves moving in and out of stocks based on where you think the market is headed.
What is Market Timing
Credit agencies like Standard & Poor’s issue this metric regarding the investment grade of a debt security.
What are Bond Letter Ratings
Typically used for retirement investing, the year you plan to retire, or year you plan to begin distributions
What is target date/fund
Psychometric tests and questionnaires are used during the planning phase to measure this specific investor attribute
What is Risk Tolerance
This type of account allows you to invest after tax dollars for retirement and withdrawals are tax free at age 59.5.
What is a Roth IRA
This “buy and hold” strategy aims to replicate market performance and typically involves investing in index funds.
What is passive investing
This is the amount of money an issuer of debt promises to pay the bondholder upon maturity.
What is Par Value
To avoid corporate taxes, this real estate investment vehicle must distribute at least 90% of its investment income to shareholders.
What is REIT (Real Estate Investment Trust)
Employment security, insurance coverage, and retirement benefits are examples of risks associated with this type of capital.
What is human capital
This type of risk cannot be mitigated when investing and affects all players in the market.
What is a Systematic Risk
People who use this investing strategy invest a fixed amount on a regular basis regardless of the share price.
What is Dollar Cost Averaging
Bonds like these offer a fixed rate of interest for 30 years and accumulate interest tax free if used for educational expenses.
What are Series EE Savings Bonds