Econ Unit 5 Quiz 3
Diversification
Dividing your money among multiple investments is the principle of ___.
Roth individual retirement account
Earnings from this account are not subject to tax if withdrawn after age 59 ½.
401(k) savings plan
Employers can match employee contributions to retirement savings.
Lose purchasing power and miss out on the power of compound interest
Investors who take too little risk might _____.
Brokerage
Most investors use a ____ to handle investment transactions, track investments, and receive statements on a regular basis.
New York Stock Exchange
The world's largest stock exchange is in America's largest city.
Individual Retirement Account (IRA)
This account allows individuals with income to make tax-deferred investments for retirement.
exchange-traded fund (ETF)
This basket of stocks or other investments may be traded in real time just like a stock.
NASDAQ
This electronic stock exchange is home to many large technology company stocks.
Dow Jones Industrial Average
This index tracks 30 of the most important U.S. companies.
Chicago Mercantile Exchange
This stock exchange specializes in agricultural financial investments.
investors will pay more for older bonds with higher interest rates
When interest rates go down, bond fund prices go up because ___.
Over time, most investors hold on to stocks, creating scarcity and driving up prices.
Which answer is NOT a reason stocks generally appreciate in value over time?
Mutual
_______ funds were created to pool investors' money and encourage small, periodic investments.
Disabled
Businesses have a legal responsibility to make certain accommodations for ____ customers.
Stock Exchange
A marketplace where stocks are bought and sold is a(n) ______.
Gallon of milk
A(n) ___ is an example of a commodity.
Commission
A(n) _____ is a charge for a financial transaction or advice.
Private
A(n) ______ company does not have or allow trading of its ownership by stockholders.
Commodity
A(n) ______ is interchangeable with other goods of the same kind.
Publicily
A(n) ______ traded company issues shares of ownership through stock offerings.
An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission. What is the total amount of money received by the investor?
$5,257
Security
A bond issued and backed by the government is called a government ______.
Dividend
A company may pay a(n) ______ out of earnings to stockholders.
Finacial
A good ______ advisor can help you wisely manage your investments.
Entity
A legal ______ is a group or organization recognized by the government as such.
Limited Liabily (LLC)
Small businesses are the likely beneficiaries of this business structure that protects the owner from personal liability.
Corporation
Stockholders who own the company are not directly liable for company actions.
Sole Proprietorship
The owner has freedom, but also has trouble getting loans and is subjected to personal liability.
Stock
The price of a(n) ____ represents investors' collective expectations of a company's future growth and profits.
Standard & Poor's 500 Index
The stock performance of hundreds of America's largest companies are tracked by this index.
Partnership
The work, risk, losses, and profits are divided between multiple owners.