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Terms in this set (39)
long-term investments, properly diversified, include the following mutual funds:
growth, growth and income, international, aggressive growth
which of the following is a good investment option?
which statement is true about liquidity?
the more liquid an investment, the less return
a reason that people need to save and invest is to?
enable their money to make money
company x's board of directors has decided to issue a portion of its earnings to its shareholder. If you own stock in Company X, you can expect to receive an?
savings accounts and money-market accounts are most appropriate for:
emergency funds and short-term goals
the benefit of diversion in your investments is:
to ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to:
a roth IRA
a young investor willing to take moderate risk for above-average growth would be most interested in:
in some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:
a retirement plan found in nonprofit organizations such as chucks, hospitals, and schools.
which of the following statements about the stock market is false?
formed in 1792, the new York stock exchange (NYSE) is the smallest organized stock exchange in the us
when buying and selling investments, you should not?
switch your investment strategy often, based on market conditions
employee benefits packages:
are a non-wage compensations provided to employees in addition to their normal wages or salaries
a saving account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement.
Money markets are great for your emergency fund due to their liquidity and stability
The purpose of war bonds is to finance military operations during war time. The last time the United States issued war bonds was during the Vietnam war.
A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets
Single stocks and mutual funds carry the same amount of risk
You can start investing with a small amount of money
Good investment portfolios are extremely complex
You should start investing as soon as you have your college education funded
If you get into financial trouble, borrowing against your retirement plan is a good plan
Saving and investing have nothing to do with the amount of money you make
quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money
relationship of substantial reward compared to the amount of risk taken
a list of your investments
piece of ownership in a company, mutual fund or other investment
securities that represent part ownership or equity in a corporation
money that is invested, either tax deferred or tax free, within a retirement plan
the government agency responsible for regulating the stock market
securities exchange commission
federal agency responsible for collecting taxes and for the interpretation and enforcement of the Internal revenue code
Internal revenue service
distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders
a savings plan operated by a state or educational institution designed to help families set aside funds for future college costs
explain why you should never invest using borrowed money?
if you lose the borrowed money you can't pay it back and you will increase risk investment
explain the risk-return ratio?
used by investors to compare the expected return to the risk of taking of an investment
why do single stocks carry a high degree of risk?
single stocks do because they have no diversification
why do mutual funds carry less risk?
mutual funds coo because they have diversification
is real estate a liquid investment?explain
not, it takes time to sell real estate property so you don't get money fast
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