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Fin Lit Investing Flashcards | StudBud
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Fin Lit Investing
Fin Lit Investing
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Flashcards
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Answers
1
All of these will typically cause the price of stock to increase, EXCEPT:
New products are announced to launch
Scandal with CEO is announced
Good earnings reports are posted for a company
Company donated large sums of money to charitable cause
2
What is a feature of a ROTH IRA?
You pay taxes upfront when you invest
You can put as much money in the account as you want
It is a work retirement account
You pay taxes when you take out the money in retirement
3
Which is a market place where stocks are bought and sold?
FINRA
SEC
NYSE
Treasury
4
Speculative stocks are NOT risky.
True
False
5
Planning your finances is a...
Helps you see what you can save or invest
Guarantees you make money
Eliminates risk on investments
Way to avoid identity theft
6
Why are collectibles/antiques a risk to invest it?
value is subjective to purchaser and could be hard to sell
collectibles and antiques are stocks and hold risk
The more of the collectible that is available the more it is worth
Value is guaranteed no matter what
7
What are mutual funds?
Shares of a company
an investment made up of stocks, bonds and other securities
loans you make to a business
loans you make to a bank
8
If i believe in the time value of money I will
Invest my money in an interest bearing account
Keep my money locked up in my piggy bank
9
Which is the MOST liquid asset?
Bonds
Stocks
Savings
Real Estate
10
Stockholders are owners in a corporation and have voting rights
False
True
11
When should you start saving for retirement?
as early/soon as possible
at 50 years old
after you start a family
after college
12
If you buy a stock at $5 a share, and then sell it for $45 a share, this results in a
capital gain
capital loss
net income
dividend
13
You are receiving 8% interest on your investments, how many years will it take your money to double? (Hint: Photo)
8
10
12
9
14
What investment has a FIXED interest rate?
index funds
bonds
stocks
mutual funds
15
Bonds are...
issued by banks
no risk at all
stock in a company
paid back after a number of years with fixed interest
16
Why would someone want money in a savings account over other investments like a CD?
It is only for the short term
It is not liquid
It is earning high rates of interest
It is safe
17
This is the regulatory agency that oversees the investing world:
FED
Treasury
SEC
FDIC
18
A benefit of investing in stock is that over time, there is a greater potential for earnings (over savings, etc)
True
False
19
Companies go public and offer stock typically to:
To limit public attention
Raise capital to expand business operations
Because it is cool
Keep decision making private
20
All are sources of personal income EXCEPT
capital gains from investments
dividends earned on stocks
interest paid on loans
interest on savings account
21
If Mrs. Eve earns $80,000 a year, and has $500,000 in assets and $100,000 in liabilies, what is her net worth?
$600,000
$580,000
$480,000
$400,000
22
How can you lower your risk when investing?
Invest in speculative stocks
Invest in only one company stock
Diversify your portfolio
Invest in C rated bonds
23
An advantage of BUYing a home as an investment is
Builds equity over time
Cheaper than renting
Paying taxes
No additional costs once the home is purchased
24
What is a Certificate of Deposit?
a CD to play music
a loan you give to a company for a set period of time interest
a loan you give to the bank for a set period of time with fixed interest
an instrument as good as cash
