Personal Finance Chapter 8

A corporation gets it equity capital from its ____.

“Growth” companies typically reinvest their profits rather than ____.

Factors that affect stock markets the most are ____.

A speculative investment is one that might earn a large profit in a short period of time.

Fee-offset planners earn all of their money through the commission they make.

Diversification increases your risk with investing.

Mutual fund is an investment where investors pool money to buy stocksand other securities.

Which risk component is most likely at fault when a stock becomes worthless?

Tax-exempt income is taxed at a later date.

Retained earnings are profits a company reinvests for expansion or research and development.

Inflation is a general rise in prices that affects everybody.

A money market is a good place to keep an emergency fund.

A capital gain is the sale of an investment for less than its purchase price.

Short-term capital gains are ____.

Which is not a speculative investment?

Which of the following is not a good investment?

Which question should you ask when SELLING real estate?

Of the following investments, the one with the most predictable income is ____.

A prospectus discloses information about a company’s earnings, assets, and liabilities.