Personal Finance U2
stocks price
A ___ represents investors' expectations for a company's future growth and profit.
bond
A borrower promises to pay a specific rate of interest during the life of a(n) ____ in addition to repaying the face value.
index
A stock ____ tracks the performance of a specific stock market or segment of a market.
portfolio
A(n) ____ is a collection of stocks, bonds, cash, and other financial assets held by an investor.
dividend
A(n) ____ is a portion of a company's profits distributed to shareholders.
Distribution
A(n) ____ is money removed from an investment and returned to the owner.
volunteer
A(n) committed and dependable ____ will greatly help a charity reach its goals.
Exchange Traded Funds
Anna wants to trade a basket of stocks in real time.
commission
Brokerages charge a(n) ____, a service charge for financial transactions.
overhead
Charities must use some contributions to pay for ____ expenses such as office rent, utilities, and operating costs.
working toward a long-term goal
Compound interest most benefits investors who are ___.
ladder
Creating a(n) ____ with CDs of different maturities is a good strategy that maximizes returns.
Entrepeneurship
Henry is willing to risk all of his savings to start his own bakery.
all in one mutual funds
Josiah wishes to invest small amounts over time in a single diversified investment.
government securities
Lincoln is willing to give up some interest in return for a safe, guaranteed investment in t-bills.
brokerage
Many investors use an online ____ to handle transactions and to track investments.
tax-defferd
Money put in a retirement plan that is not taxed until a future date is called ____ contributions.
employer
One benefit of 401(k) contribution plans is that the ____ frequently matches the employee's contribution.
capital gain
Profit earned by the sale of stock or property is a(n) ____.
30 large american companies
The Dow Jones Industrial Average tracks the performance of ___.
giving money by check or credit card
The best way to donate to a charity is by ___.
Emergency Fund
The first step to creating a(n) ___ is to set a realistic goal of $1,000 or so.
Prinicipal
The initial amount placed in an account is the ____.
benchmark
The use of a(n) ____ is a good way to track the performance of one's investments.
Individual Retirement Account (IRA)
This account is open to not just employees, but all individuals who wish to make tax-deferred contributions to save for retirement.
money market account
This account provides higher interest but may require a higher minimum balance.
time deposit or CD
This bank account pays a higher interest rate but imposes a penalty if the money is withdrawn before a certain time.
savings account
This bank account pays interest and allows limited withdrawals.
401 (k) contributions
This retirement account allowing tax deferral for income is offered by an employer.
529 plan
This savings account allows earnings to be used without taxation when used for college expenses.
asset allocation
Use of ___ allows you to lower risk by spreading money across different types of investments using fixed percentages.
75%
What is a reasonable minimum percentage of donations that a charity should use in providing services?
delayed gratification
What is gained from resisting an immediate reward and waiting for a later, greater reward is called ___.
Consider the causes that are important to you.
What is the first step in giving to charity?
How should I prepare my taxes?
Which question is least relevant when choosing a financial advisor?
A growing number of investors push up stock prices.
Which statement is NOT a reason that stocks tend to appreciate over time?
dollar cost averaging
___ is the strategy of buying more shares when an investment dips in price.
