Chapter 7 Test Review - Investments

The more available your money is, the more ______________ it is

Investment in which people pool their money to buy stocks, bonds, real estate, or other assets

Condition that exists when investors are optimistic about the economy and the market goes up

A promise to pay a certain amount on a certain date, issued by a corp., bank, or the govt.

The profit from the sale of assets such as stocks, bonds or real estate

High-risk stocks that typically sell for less than $1-$3 per share when they are first offered

When your workplace will contribute a % of money to your 401k/403b if you do as well

Bulk items such as grains, metals and foods that are bought on an exchange

Tax deferred retirement plan specifically set-up for public, tax exempt organizations

Commodities and Penny Stocks are extremely risky investments

If you wanted to invest in a 401K, where would you go to begin?

Company earnings distributed to shareholders, usually in the form of money or stock

An investment in the ownership of a corporation, usually represented by shares of the business

Which statement is true about LIQUIDITY?

Retirement plan in which contributions are not tax-deductible, but earnings are  tax free

Personal retirement plan in which contributions are tax-deferred and tax deductible

A single stock is the best way to spread your money around

Diversification lowers your risk with investing

Indicator of stock market performance based on the avg. stock prices of 500 top U.S. companies

Largest U.S. stock market in terms of # of companies listed; all trading is done electronically

Daily average of the stock prices of 30 of the largest and richest blue chip companies in U.S.

When investing in stocks you want to buy _________ and sell ___________

If you are able to write an investment off on your income taxes annually, it's considered

The world’s largest stock market in terms of dollar volume; Physical building on Wall Street

What does Dave Ramsey define as “spreading your investments around?”

A debt instrument where the government, a corporation, or a bank owes you money

Condition that exists when investors are pessimistic about the economy and the market goes down

When investing in a stock, you always want to look at its ____ to ____ year track record

Which of the following is not a safe investment?

Tax deferred retirement plan funded by contributions from the employee (private company)