Stock Classifications
Stock that is EXPANDING faster than industry average, gives little to no dividend
What is a growth stock?
Publicly traded debt
Higher risk equals ____________ return.
What is higher?
Amount paid at the start to be returned at the end.
What is the par (face) value?
Mirrors the composition of a particular stock or bond index
What is an index fund?
Stock that is highly regarded (Apple, Sony, Google...)
What is a blue chip stock?
A share of ownership in a company
What is a stock?
Failure to meet an obligation (like paying money owed)
What is a default?
Percentage interest on a bond
What is the coupon rate?
Price at which mutual fund is sold
What is the NAV (net asset value)?
Stock that is resistant to economic downturn (food, utilities...)
Type of retirement investment account (2 possible answers)
What is an IRA or 401k?
Ability to buy or sell something easily
What is liquidity?
Bond that doesn't pay interest
Zero-coupon bond
Fund that concentrates investments into stocks in a particular INDUSTRY or geographic area.
What is a Sector Fund
Stock that pays higher than average dividends
What is an income stock?
Investment contract between a person and an insurance company
What is an annuity?
Works in two capacities, both matching buyers and sellers for a commission, and buying and selling for their own account
What is a broker-dealer?
Risk that an issuer may default and not pay back bond
What is credit risk?
Fund that maintains some percentage of their assets in stocks, bonds, and money market instruments
What is a balanced fund?
Stock that gives claim to a foreign shares
What is an ADR (American Depository Receipt)?
Investment account that allows for tax free growth for qualified education expenses
What is a 529 plan?
Company that displays real time quotes on prices they will buy or sell a security at.
What is a market maker?
Bonds are rated by credit rating agencies, name 2 of them.
Moody's, Fitch, S&P, Egan, JCRA...
Fund that invests in out of favor companies considered undervalued
What is a value fund?