Econ Unit 3 Review

Effects of an investment over time; snowball effect

Using pricing history to help analyze a stock; often used by day traders

A grouping of all your assets

Companies with a historic reputation of success; quality, reliable, able to turn a profit in good & bad times

The current yearly limit for 401k contributions

Employer provided retirement plan; tax deferred, guaranteed income for life for employee and spouse

Uses information of profitability & revenue changes to guide investment decisions; traditional style of investing

Investing in different assets to avoid putting all your eggs in one basket

A reduction of your taxable income, also called a write-off

Tax deferred retirement plan for government employees

Stocks that grow slowly & have generous dividends

Tradable financial instruments used to raise capital in public & private markets

A stock that is temporarily undervalued due to bad PR or poor performance

Tax deferred individual retirement account, limit of $6,500 contributions per year

Highest & lowest stock price in a year; indicator of stock volatility

Index of 30 large companies that are historically profitable & stable

NOT a tax write-off

While you can put more than the yearly limit into your 401k, why shouldn't you do that?

Index of over 2000 tech and biotech companies; also an exchange

Ability of each investor to handle risk of their investments

Number of shares traded in a trading day

Percent return of dividend; Calculation: dividend - share price

Assets - liabilities

Economy is expanding, unemployment is falling/stable

Professionally managed investment fund that pools money from many investors to purchase securities

Portion of the profits paid back to investors on a per share basis (not required)

Government IOU; a long term investment, but less risky than stocks

Tax deferred private sector retirement vehicle; often has employer contribution matching

Total corporate profits -:- number of shares

Prices go up across the economy; your dollar doesn't go as far

Overall value of a publicly traded company

A group of stocks put together for the purpose of the average share prices of all companies in group

Buying & selling securities in the same day

Investing by betting a stock will fall in price

Economy is contracting, unemployment is rising

Compares price per share to earnings per share; decreases in a bear market

A way to lower your total taxable income (2 correct)

Contributions taxed on the front end, no early deductions, limit of $6,500 contributions per year

Selling at a higher price than you bought at; also called capital gain

Ease of turning an asset into cash

How much people are willing to pay for a piece of the company

Index of 500 large publicly traded companies from different sectors

Has a high PE ratio, little to no dividends, selling at 52 week highs, dominant position in industry

Insurance product that offers guaranteed income for life, but has high fees/costs

Totally online exchange without a physical location