Decisions
to use assets to earn income or profit
investing
Best strategy to avoid risk for long term investment
Diversification
Name one Market Sector type in the stock market.
Basic Materials, Consumer- cyclical, Consumer - non-cyclical, Energy, Financial, Healthcare, Industrial, Technology, Telecommunications, Utilities
If you own stock in a company, what do you actually own?
You own a share or part of that company.
At what age should you start saving for retirement?
in your 20s
Best time to invest
Early or in your 20s
this stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also individual investors
IPO or Initial Public Offering
What is a group of companies that make the same products called?
Industry or Sector
A bond is like giving the government or a corporation a...
loan or an IOU. That must be paid back with interest.
What is the best kind of interest in any kind of investing/saving account?
Compound Interest
Name one of the markets or exchanges that stocks are traded on
NYSE or New York Stock Exchange
Nasdaq
Type of company that is owned by a person, family, or small group of investors that does not sell shares of stock in the company to the public.
Private Company
What is the amount of money that remains after subtracting the company’s expenses from its revenue?
Earnings
If you do not want to manage your portfolio but want to make money and keep a diversified portfolio what should you invest in?
Mutual Fund
Using the rule of 72, which will double your money faster - a higher or lower interest rate?
higher
In order for a company to trade its' stock it must be this kind of a company
Publicly traded company
Your collection of investments is called your...
portfolio
If someone says that "a stock is trading at 20 times its earnings," what number are they talking about?
P/E Ratio or Price/Earnings ratio
In you invest $100, at a 5% interest rate, using simple interest, how much money will you have at the end of 3 years?
$115
What is the Rule of 72 used for?
To figure out how long it will take to double your investment based on a specific interest rate.
any person, company, or institution that owns at least one share of a company’s stock
stockholder or shareholder
Part of a company’s profits (earnings) that it pays as money to shareholders
Dividend
What sector is Apple a part of?
Technology
Using the Rule of 72, if you have a 2% interest rate, how long will it take for you to double your money?
36 years
A retirement savings plan funded by employee contributions and (often) matching contributions from the employer. Contributions are taken from pre-tax salary and the funds grow tax-free until withdrawn.
401(k)