Financial Management Final Exam
Bull Market- What is it?
A market condition that occurs when investors are optimistic about the economy and buy stocks.
Bear Market- What is it?
A market condition that occurs when investors are pessimistic about the economy and sell stocks.
Insurance- What is a policy?
A person joins the risk-sharing group by purchasing a contract known as a policy.
Public Corporation- What is it?
A publicly held corporation, is a company that issues stock to a small group of people.
Emergency fund- what is it?
A saving account that you can access quickly to pay for unexpected expenses or emergencies.
Mutual Fund- What is it?
An investment in which investors pool their money to buy stocks, bonds, and other securities selected by professional managers who work for an investment company.
Homeowner's Insurance- What does it cover? What does it not cover?
Homeowners insurance is coverage that provides protection for your residence and its associated financial risks, such as damage to personal property and injuries to others. A homeowners policy provides coverage for the home, building, or any other structures on the property; additional living expenses; personal property, personal liability and related coverages; and specialized coverages.
Insurance- What is the overall purpose?
Insurance is protection against possible financial loss.
Liability- What is it?
Liability is legal responsibility for the financial cost of another person's losses or injuries.
Medicaid vs. Medicare
Medicare is a federally funded health insurance program available to people over 65 or with certain disabilities. The other well-known government health program is Medicaid, a medical assistance program offered to certain low-income individuals and families. Medicaid is administered by the individual states, but it is financed by a combination of state and federal funds. Unlike Medicare, Medicaid coverage is so comprehensive that people with Medicaid do not need supplemental insurance. Typical Medicaid benefits include: • Physicians'services • Inpatienthospitalservices • Outpatienthospitalservices • Lab services • Skillednursingandhomehealthservices • Prescriptiondrugs • Eyeglasses • Preventivecareforpeopleunder21
Negligence- What is it?
Negligence is the failure to take ordinary or reasonable care to prevent accidents from happening.
Stocks- Why do companies issue it?
Represents part ownership's of a company
Insurance- What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act of 1986, known as COBRA, allows an employee who loses his or her job to keep the former employer's group coverage for a set period of time.
Diversification- What is it, and why is it important?
The process of spreading you assets among several different types of investments to reduce risks.
