Investing Unit Review

T or F: The price of stock shares varies based on what people are willing to pay.

Employer funded program that allows employees to share in company's profits

T/F: Corporations issue bonds to help raise capital.

What suggests that money available today is worth more than that same amount in the future

Spreading money among several different investments.

What type of retirement account can you open without having to have a job?

broker that provides clients with investment information

These can be issued by corporations/governments for the purpose of borrowing money.

When should individuals start saving for retirement?

As investment risk rises, investors seek _____ returns to be compensated for taking risks

Social Security...

Mrs. Losch, a public school teacher, can invest in a ____ to help save for retirement.

Which of the following should you NOT do to diversify your portfolio?

Buy 10 shares at $10 each; Sell those 10 stocks at $5 each. Gain/Loss? How much?

If we were to buy shares of Nike today, who would we be buying them from?

When investors are pessimistic about the economy and the market goes down.

Daily average of the stock prices of the 30 largest & richest blue-chip companies in the US.

When investors are generally optimistic about the economy and the market goes up.

Committing $ to an endeavor with the expectation of obtaining additional income/profit.

A(n) ___ is the first time a company sells shares of itself to the public to raise capital.

Company earnings distributed to shareholders.

Safe investments in the ownership of large respected corporations.

contributions are taxed; pay no taxes when money is withdrawn at retirement.

Investment in which people pool their money to buy stocks/bonds and share in the risk

Putting $30 per paycheck into an account to help pay for books during college is an example of