Investing (Personal Finance)

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

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


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