5 Written Questions
5 Matching Questions
- fixed annuity
- large-cap fund
- single stocks
- aggressive growth stock mutual fund
- a Securities that represent part ownership or equity in a corporation, wherein each share is a claim on its proportionate stake in the corporation's assets and profits, some of which may be paid out as dividends.
- b type of annuity that guarantees a certain rate of return; see annuity.
- c piece of ownership in a company or mutual fund.
- d funds comprised of large, well-established companies.
- e mutual fund that seeks to provide max. long-term capital growth from stocks of primarily smaller companies or narrow market segments; dividend income is incidental; the most volatile fund; also referred to as a small-cap fund.
5 Multiple Choice Questions
- to spread around one's investment dollars among several different classes of financial assets and among the securities of many issuers; results in lowered risk.
- mutual fund containing a group of medium-sized companies that are growing.
- relationship of substantial reward in comparison to the amount of risk taken.
- quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money; when there is more liquidity, there is typically less return.
- the past history of something; with investments, look at the five or ten year record.
5 True/False Questions
savings account → Securities that represent part ownership or equity in a corporation, wherein each share is a claim on its proportionate stake in the corporation's assets and profits, some of which may be paid out as dividends.
bond → Certificate of Deposit, usually at a bank; savings account with a slightly higher interest rate because of a longer savings commitment (i.e. six months, one year, etc.).
mutual fund → pool of money managed by an investment company and investment company and invested in multiple companies, bonds, etc.; offers investors a variety of goals depending on the fund and its investment charter; often used to generate income on a regular basis or to preserve an investor's money; sometimes used to invest in companies that are growing at a rapid pace.
small-cap fund → mutual fund containing a group of medium-sized companies that are growing.
speculative → purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss.