Personal Finance Unit 4 Review Ch 10, 11, 12

When a company issues more stock to current shareholders to the stock they already own

The most important consideration when you are saving is

A group of people who pool their money together to buy and sell investments is called

Which of the following allowed consumers to get credit scores along with free credit reports?

Strategy: make selection of securities, and a comparative analysis periodically every 2-3 yrs

Investment-grade corporate bonds are considered High-risk

A medium-term goal is accomplished in

Law requiring improved financial reporting, audits & accounting services for public companies.

NYSE is an over-the-counter market

Higher the risk, the greater your possible return.

What is a Futures Contract?

Return on investment

An order requesting to buy or sell stock at the current price

When a company issues new shares of stock to stockholders instead of paying cash dividends

Selling stock that has been "borrowed" from a broker and replacing it later.

Stocks are a low risk investment of shares of ownership in a corporation

Investors can buy securities directly from the public company.

Which organization is responsible for self-regulation of the securities industry?

What is an Ideal investment?

An economic decline is not the time to buy stocks.

Mutual Funds are not diversified, increasing your risk.

Which of these plans are funded by employees of government and nonprofit organizations?

An initial public offering is the first time that the stock is offered to the public

Chance that prices will rise faster than the rate of return

Illiquid investments are not converted into cash quickly or without penalty

A money market deposit account is FDIC insured

Which type of investing involves buying stocks or other investments and holding them?

Financial security is the ability to prepare for future needs and meet current expenses.

Diversification means

A CD investment is liquid and can be withdrawn early without penalty.

Qualified stockbroker with reduced commission that does not offer advice.

A bear market exists when stock prices are steadily decreasing.

Contributions to a Roth IRA are taxed

A company's profit shown as a percentage. Net income divided by revenue.

A discount corporate bond that does NOT provide the typical semiannual interest payments?

Involves the buying and selling of stocks based on what the market is expected to do.

And investment portfolio should have a strong foundation of safe investments

contract purchased from insurance company providing a series of payments for a period of time.

Which of the following stockholders take a higher risk?

With tax-exempt investments, you won't pay tax until the money is withdrawn.