The Market
More on the market
Investment Types
More Investments
Misc.
1
These are often considered your riskiest type of investment due to their volatility.
What are stocks?
1
These are gained when a company you own stock in reports profits and pays out portions to shareholders.
What are Dividends?
1
These bonds are issued by state and local governments and are backed up with tax payer dollars.
What are Municipal Bond?
1
This type of fund is considered passive as it is not managed by anyone and is intended to mirror the performance of a specific portion of the market.
What is an index fund?
1
Many investments give you a return on your investment using this type of interest which grows on itself.
What is Compound Interest?
2
This is the world's largest Stock Exchange, located on Wall Street, it trades approximately 2800 different companies' stocks.
What is the New York Stock Exchange?
2
The highlighted portion represents this.
What is the dollar change?
2
A group of people pool money into these funds which are typically actively managed.
What are mutual funds?
2
This type of IRA will be tax deferred meaning that you won't pay taxes until it is taken out at retirement. You also have to wait until you're 59.5 years old to withdraw your money without penalty.
What is a traditional IRA?
2
These funds have a manager who looks over them and determines where best to invest money. Mutual funds are often this.
What is actively managed (fund)?
3
This is what we call the market when it is on a general rise. It tends to encourage the buying of shares.
What is a bull market?
3
It is a market index of 30 Blue Chip, industrial stocks, used as a measure of general market trends?
What is the Dow Jones?
3
It is a loan, of sorts, to the government or company that promises repayment and interest upon date of maturity.
What is a bond?
3
It is typically called a Defined Benefits Plan. It guarantees a specified level of retirement income after working for a specific number of years with that company. This is its more common name.
What is a Pension?
3
The S&P 500 and DOW Jones are great examples of these.
What are indices/index funds?
4
This is what we call the market when it is in a general decline. It tends to encourage the selling of shares.
What is a bear market?
4
When you have spread your money out across different stocks, bonds, and other funds, your portfolio is considered this.
What is diversified?
4
A retirement fund which has the advantage of having your employer match your contribution up to a percentage of your salary.
What is a 401(k)?
4
A retirement plan whereby employees get a share of the profits of the business. Similar to receiving dividends from shares of stock.
a - IRA
b - PSP
c - SEP
d - ESOP
What is a Profit-Sharing Plan (PSP)?
4
Putting your money here would be best if you were concerned about maintaining money in case of an emergency.
What is a savings account?
5
It is America's largest electronic stock market, but second most widely used. It primarily tracks the tech industry and covers over 3300 companies.
What is the NASDAQ?
5
It is a a market index that tracks the prices of 500 different stocks as a measure of overall stock market performance?
What is the S & P 500?
5
A retirement fund paid for with after-tax dollars. It grows tax free and is withdrawn without taxes upon retirement.
What is a Roth IRA?
5
A compensation system that awards employees shares of company stock in addition to their regular compensation as a form of retirement. (Companies like Publix and Chobani do this.)
a - IRA
b - PSP
c - SEP
d - ESOP
What is an Employee Stock Ownership Plan (ESOP)?
5
Many of the younger generations have turned to these digital options to invest their money; a significant change from what their parents and grandparents did.
What are Robo-Advisors?