Chapter 7 Test Review - Investments

If you wanted to invest in a 401K, where would you go to begin?

Indicator of stock market performance based on the avg. stock prices of 500 top U.S. companies

Daily average of the stock prices of 30 of the largest and richest blue chip companies in U.S.

When your workplace will contribute a % of money to your 401k/403b if you do as well

If you are able to write an investment off on your income taxes annually, it's considered

What does Dave Ramsey define as “spreading your investments around?”

Retirement plan in which contributions are not tax-deductible, but earnings are  tax free

The profit from the sale of assets such as stocks, bonds or real estate

Bulk items such as grains, metals and foods that are bought on an exchange

Condition that exists when investors are optimistic about the economy and the market goes up

Which of the following is not a safe investment?

When investing in stocks you want to buy _________ and sell ___________

A debt instrument where the government, a corporation, or a bank owes you money

Company earnings distributed to shareholders, usually in the form of money or stock

Tax deferred retirement plan funded by contributions from the employee (private company)

An investment in the ownership of a corporation, usually represented by shares of the business

Investment in which people pool their money to buy stocks, bonds, real estate, or other assets

A single stock is the best way to spread your money around

Condition that exists when investors are pessimistic about the economy and the market goes down

The world’s largest stock market in terms of dollar volume; Physical building on Wall Street

Commodities and Penny Stocks are extremely risky investments

Which statement is true about LIQUIDITY?

High-risk stocks that typically sell for less than $1-$3 per share when they are first offered

Tax deferred retirement plan specifically set-up for public, tax exempt organizations

When investing in a stock, you always want to look at its ____ to ____ year track record

Diversification lowers your risk with investing

The more available your money is, the more ______________ it is

Personal retirement plan in which contributions are tax-deferred and tax deductible

Largest U.S. stock market in terms of # of companies listed; all trading is done electronically

A promise to pay a certain amount on a certain date, issued by a corp., bank, or the govt.