Chapter 7: Investing & Estate Planning

An individual may deduct this from their income taxes

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

Inflation:

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

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

Stock:

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

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

All earnings from investments are tax exempt

Stockbrokers are licensed through the

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

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

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

A period of uncertainty and falling stock prices.

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

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

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

Google pays annual dividends however, Coca-Cola does not

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

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

Bond

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

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

retirement plan available to employees of nonprofit organizations

Beneficiaries

Employer-sponsored retirement plan

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

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

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

Trust

A prospectus contains

Mutual funds are managed by professional investors.

The assets and liabilities a person leaves upon their death

Instead of paying dividends many companies reinvest back into their businesses

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

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

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

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

The legal process of concluding the affairs of an estate.

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

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

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

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

Codicil

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

Stock trade

Dividend