Econ Unit 3 Review

Tax deferred retirement plan for government employees

NOT a tax write-off

Totally online exchange without a physical location

Investing by betting a stock will fall in price

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

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

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

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

Total corporate profits -:- number of shares

Index of 30 large companies that are historically profitable & stable

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

Ease of turning an asset into cash

Economy is contracting, unemployment is rising

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

Ability of each investor to handle risk of their investments

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

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

Assets - liabilities

Economy is expanding, unemployment is falling/stable

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

Effects of an investment over time; snowball effect

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

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

Number of shares traded in a trading day

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

Percent return of dividend; Calculation: dividend - share price

Buying & selling securities in the same day

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

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

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

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

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

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

A grouping of all your assets

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

The current yearly limit for 401k contributions

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

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

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

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

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

Overall value of a publicly traded company

Stocks that grow slowly & have generous dividends

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