Stocks & Investing

What does P/E ratio stand for?

A stock that has a market value that tends to reflect the state of the economy.

Growing your money over time by putting it into a vehicle of your choice.

What is riskier?

A plan managed by your employer that you put money into to pay you payments when you retire.

Risk tolerance describes how much you are willing to lose or risk.

When a company earns a profit, they can...

A well managed portfolio of investments should always use the strategy of

What is the ticker symbol for Ford?

What does IPO mean?

Companies issue stock to

A plan that employees can put money into through their company to save for retirement. They own

What is the difference in saving & investing?

Market condition that occurs when investors feel bad about the economy and sell stocks.

Risk =

A good 401k plan is 

An IOU or loan to a company.  You do not own a piece of the company

The risk pyramid has the riskiest investments at the bottom.

You should avoid panic selling in a stock market crash.

Market condition that occurs when investors feel good about the economy and buy stocks.

Can the general public buy stock in private companies?

Stocks issued by the strongest & most respected companies.  Examples: AT&T, Kellogg, Ford

Stock whose potential earnings may be higher than the average earnings for other companies.

An automatically diversified investment.  Easy as pie.

Which is not a stock exchange?

Stocks are riskier than Mutual Funds.

What does a stock price mean?

Money that companies pay stockholders each quarter when they have good earning are called

Stocks that are issued by new companies or companies whose sales are very unsteady.

Stocks with higher than average dividends.

Most common investment among Americans.

What does a BETA of 1.5 mean?

What is the most common strategy of investing for most Americans?

A stock that remains stable during declines in the economy.

Putting money away for a rainy day.