Investing (Personal Finance)
if you had invested $100 in 1972 in the 500 stocks of the S&P500 Index, how much would you have had in 2018
$1,612
the company Apple has how many shares outstanding
15,500,000,000 shares
a ________ is an employer-sponsored retirement account and always add to it when you can
401(k) account
which of these is different between ETFs and mutual funds
ETFs usually have lower fees than mutual funds
NYSE stands for
New York Stock Exchange
where were stocks first created
Rome
if you invest $4,000 per year over the next 40 years for retirement, which of the following is correct?
a high rate of return will give you the highest total dollar return
what does a stock represent
a percentage of ownership of a company including assets and profits
what is a mutual fund
a way to buy a bundle of securities all at once
what is an Index ETF
an ETF that tracks a stock index, like the S&P500
who would be the most likely to buy an inverse ETF
an investor who normally is not able to short-sell in their portfolio
who would be the least likely to buy a Leveraged ETF
an investor who thinks the underlying index will slowly go up over time
what provides guaranteed income for life
annuities
the process of spreading your assets among several different types of investments is called
asset allocation
commission that is charged to the buyer of a mutual fund at the sell of the fund
back-end load
the potential return of any investment should
be directly related to the risk the investor assumes (risk-return trade)
what makes up a 'ticker symbol' in the US
between one and five letters only
a stock issued by a stable corporation that generally attracts conservative investors is called a ________ stock
blue chip
high-yield, municipal, long term US government, intermediate corporate are examples of
bond funds
getting the money needed to start an investing program includes all except
borrow small amounts of money to start investing
what isn't one of the four major sources of retirement income
certificate of deposit
what is the difference between open-ended and closed-ended mutual funds
closed-ended funds have a fixed number of shares, while open-ended funds do not
Oakley wants to be part of the most basic form of ownership for a corporation. she should invest in
common stock
after you purchase an investment, you should
continually evaluate your investment
Brian purchased common stock in XYZWidgetes.com. to be a successful investor, he should
continue to evaluate his investment in XYZWidgets.com after the purchase
a distribution of money, stock, or other property that is paid to the stockholders of a company is called a
dividend
if you invest $100 automatically in a stock each month and mot buy high and sell low it is called
dollar cost averaging technique
type of commission charged on a mutual fund that is taken out at purchase is
front-end load
major sources of retirement include all except
gifts; windfalls; inheritance
establishing investment goals starts with asking
how much money do you need to satisfy your investment goals
which of the following types of stock funds invests in stock issued by companies with a long history of paying dividends
income funds
which of the following types of stock funds invests in the same companies included in the S&P 500 stock index?
index funds
to become one of the owners of a corporation when it initially became available to the general public, you participate in the
initial public offering
which of the following types of stock funds invest in stock issued by companies throughout the world outside the US?
international funds
why did investors start using ticker symbols
it was faster to move news using telegraphs with short names
how do you buy ETFs
like a stock, with the price constantly updating
many mutual funds charge a commission every time shares are purchased by investors. these are called
load funds
what is the main difference between ETFs and mutual funds
mutual funds purchases are done once day after the market has closed
this ratio uses the market price per share of the stock and the earning per share
price-earnings ratio
a report of what the mutual fund consists of, fees, manager's profile, holdings, etc. is called a
prospectus
which of the following investments is the least liquid?
real estate
when estimating retirement living expenses you should consider
some expenses may stop or go down; other expenses may go up; inflation will increase amount needed to cover expenses when retired
aggressive growth, mid-cap, international are all types of
stock funds
what is preferred stock
stock that gets paid dividends first
over the last 30 years or so, which investment produced the highest percentage returns
stocks
over the last 90 years, which investment produced the most volatile returns
stocks
which of the following as returned an average of almost 10% per year since 1926?
stocks
which of the following investments typically has the largest potential growth?
stocks
which of the following investments typically has the most risk?
stocks
what is the biggest disadvantage of using mutual funds
the current value of invested capital
what does a stock quote represent
the last price a seller and buyer agreed to make a trade
which of these items can you find in a stock quote
the stock's current daily volume
what is 'net change'
the total amount a stock's price has changed since the previous trading day
why would a stock have a '.A' at the end of its ticker symbol
there are multiple classes of stock for this company
what is the main advantage of using mutual funds
they automatically pass through dividends to shareholders
a ________ allows for $5500 contribution, possible tax-deductible, interest accumulates tax free until withdrawal
traditional IRA
what is an IPO
when a company first sells shares of stock to the public (initial public offering)
which of the following steps should be completed before making your first investment?
work to balance your budget
what kind of order do you want to "lock in"
your gain of your stock going up from 20 to 35 and selling at a drop of $33: stop-loss order
