Unit 3: Savings & Investing

Higher risk has the potential for?

Savings option that lock in money for a period of time in return for a fixed interest rate.

A 401K and IRA are both considered this type of savings option.

An account that helps set aside money for retirement.

Low risk =?

Interest earned on the original principal and on previously earned interest is called?

Savings certificate issued by a bank or credit union.

Which investment option is considered to be the riskiest?

Savings, Government, Municipal, and Corporate are all a variety of this type of savings option.

Which savings option has tax deferred growth?

A benefit to a mutual fund is…

A deposit account that earns interest and is issued by a bank or credit union.

Person charging a fee/commission to execute the buy and sell orders submitted by an investor.

Where are stocks and other securities bought and sold?

Which of the following measures how quickly an investment can be turned into cash?

An investor that invests among a variety of investment options is engaging in concept known as?

Mutual funds allow investors to invest in a variety of stocks and bonds.

This is a retirement account set up through an employer.

If you bought a stock at $10 per share and sold it for $15 per share, the difference is called?

Type of checking a savings account but with a higher minimum balance and higher returns.

When you buy a stock in a company, you are guaranteed to receive?

A savings option that must be used for education or can face a 10% penalty.

Form of debt financing where gov. or corp. borrow money and pay it back with interest.

The current price of a stock that sells on the stock exchange is called?

If you bought a stock at $50 per share and sold it for $30 per share, the difference is called?

Young, entrepreneurial companies with high growth potential are what type of stocks?

A part owner of a company.

This savings option has the possibility of having matched contributions by employers.

An older, stable company that pays high dividends and has low growth is what type of stock?

Considered to be the safest savings option but pays very low interest rate.

Stock market can provide a greater return on your investment and has lower risk.

This type of ownership gives you voting rights in a company?

Time value of money states…

This savings option has a limited number or withdraws (usually per month).

What is less risky? A Stock or Bond?

Largest and oldest stock exchange?

Share in ownership of a company

A debt investment which an investor loans money to gov. / corp. in return for an interest rate.

Well-known, reliable company. Steady growth. Pays small, regular dividends. What type of stock?

FDIC and NCUSIF insure depositors up to ____________?

Electronic exchange marketplace?

A portion of a company’s profits that will be shared with their investor’s is called?

A professionally managed portfolio of stocks, bonds, funds, orother investments.

Interest earned on only the original principal is called?

This is a personal retirement account.