Chapter 7: Investing & Estate Planning

You should select investments to meet your financial goals and objectives.

Instead of paying dividends many companies reinvest back into their businesses

All earnings from investments are tax exempt

Contract with an insurance company that provides regular income for a set period of time

A living will sets out specific instructions for your medical care and life support.

Stockholders written authorization to have someone else vote on their behalf.

When your share prices rise, the total value of your shares decrease

retirement plan available to employees of nonprofit organizations

Both investments and cash gain value quickly during times of inflation.

The assets and liabilities a person leaves upon their death

In general you purchase more stocks when the price is low and fewer when high.

A period of uncertainty and falling stock prices.

When you move retirement savings from one qualified account to another without penalty you are

Purchasing a financial product or valuable items with the goal of making money is

Stock:

Beneficiaries

Trust

Inflation:

A legal document stating a person's wishes after death.

Investment created by pooling money of many people & investing it in a collection of securites

Dividend

IRA which individuals contribute after-tax income and withdrawals are not taxed

A market in which there is a sense of optimism encouraging more investment.

This stock had equal voting rights and receives dividends declared by the company.

The individual appointed by the deceased to carry out the terms of the will

Stocks listed on the NYSE use one, two, and three ticker symbols.

The ease with which an investment can be converted to cash is

Stockbrokers are licensed through the

NASDAQ lists securities of less than 3,000 companies worldwide.

Codicil

Google pays annual dividends however, Coca-Cola does not

Typically this stock does not increase in value as much as others.

Stock trade

One advantage of investing for a short-term goal is to have money for the future.

A person or institution named to manage assets on behalf of beneficiaries.

Bond

Employer-sponsored retirement plan

The two secondary markets where stocks are bought and sold are:

Stockholders are responsible for a company's debt if the company goes out of business

A prospectus contains

An individual may deduct this from their income taxes

A person who dies without a will is said to have died

Investments are insured up to $250,000 by the FDIC

Mutual funds are managed by professional investors.

IRA that allows you to contribute pre-tax income withdrawals are taxed

The legal process of concluding the affairs of an estate.

Companies use this type of stock to raise capital for expansion.