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Chapter 9 Flashcards | StudBud
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Chapter 9
Chapter 9
20 terms
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StudBud Administration
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130 plays
Investing
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
What are junk bonds?
Corporate bonds that crash
Ones that get thrown away if you do not cash them in on time
It is the same as a high-yield bond
Bonds sold by the government
2
Which of the following is NOT a printed source of information about stocks?
Kiplinger's Personal Finance
Money
Consumer Report
Forbes
3
When should you invest in the stock market?
When you've paid off your credit card debt
After setting aside emergency money
When you have money you do not need for 5-10 years
All of the above
4
What is a full service broker?
A stockbroker who gives advice and buys and sells
A stockbroker who dispenses advice only
A friend who gives advice
A stockbroker who buys and sells only for customers
5
What is a 401(k)?
A tax-deferred retirement plan that employers offer
A payment plan for medical benefits
A piece of legislation that forces employers to pay you
A running race in Alaska
6
What does IRA stand for?
Individual Recreational Account
Individual Retirement Account
Interest Reserve Account
Internal Revenue Accounts
7
What are the advantages of NASDAQ?
Not limited to a single building
Less expensive to operate
All of the above
Can trade more kinds of stocks
8
What are the two types of IRAs?
Roth
Traditional
Common
Preferred
9
What is the general rule of investing?
The higher the potential rate of return the greater the risk
The smaller the rate of return the greater the risk
The rate of return will be the same as the amount of risk.
The greater the potential return the smaller the risk
10
What is a stockholder?
Same as a broker
A person who works on Wall Street
A farmer
Those who own a corporation because they own shares of stock
11
What is a load?
The taxes that are due on your mutual fund
sales fee paid for investing in a mutual fund.
The measure of a high risk investment
The number of stocks in a mutual fund
12
What is a 403(b) plan?
An official term used for a Will
Another tax deferred retirement plan for public employees
The retirement account for Blue Chip companies
College tuition account
13
What is the common shortcoming to all tax-deferred investment plans?
You have to be able to set money aside and not touch it
You still have to pay tax
A shortcoming does not exist
They take a long time to mature
14
What is a corporate bond?
When stocks are sold then turned into bonds.
Stocks sold by Corporations
Bonds sold by corp. to raise funds for business activities
When corporations are friends
15
What is insider trading?
Exchanging advice with a competitor
Trading based on info that is not available to the public
Trading stocks amongst the employees of a company
Exchanges that happen inside a building
16
What was the name of the lecturer from the Investing video?
William Adams
William Anderson
William Ackman
William Ackerman
17
How is the rate of return measured?
Percentage of the amount invested.
Multiply the return by 100%
Add the amount invested and return.
Subtracting the return from the principle.
18
Who is responsible for enforcing federal laws concerning the trading of stocks and bonds?
CAH
FASB
CPA
SEC
19
Mid cap stocks are shares in corporations with a total stock value of:
2 to 10 billion
More than 20 billion
Less than 2 billion
10 to 20 billion
20
What celebrity went to jail for insider trading in 2004?
Al Capone
Bernie Madoff
Martha Stewart
Ice T
