Pers Fin: Investment Unit Review

Investor loans money to government or corporation for a period of time and interest rate

When the stock market is consistently up, it's referred to as a ______ market

Certificates of deposit are very liquid.

Beta indicates the volatility of an investment relative to the average stock market performance

Every share of preferred stock entitles you to one vote for the board of directors.

Mutual fund investments are more principal safe than a money market account

A well known stock that has a long, successful track record, is referred to as a _____

What is the advantage of investing in a money market account?

Which of the following pays interest?

Which of the following are 100% principal safe?

Index funds are designed to outperform the Dow Jones Industrial Average

An investment tool that pools funds from multiple investors to buy a wide variety of securities

Which of the following provide the highest potential growth over a long period of time?

An IPO (initial public offering) is ______

If more people want to buy a stock than sell it, what will happen to the price of the stock?

Which of the following is the riskiest investment?

Which type of bond is sold by a business to finance buildings and equipment?

The risk of using a money market account is ____

Fees for a passively managed mutual fund are higher than those for an actively managed fund

If you had a large amount of money that you needed in 6 months, how should you invest it?

Amount of money you earn from funds you invested

Which type of mutual fund is less risky and provides moderate returns?

Corporate "insiders" can legally trade corp. stock during certain times, designated by the SEC

If you buy stock for $100 and later sell it for $500, you have a ______ of $400

Taking funds from one investment and putting in another so the % in each matches your plan

Mutual funds are the best way for small investors to achieve diversification

Why do some investors intentionally sell stocks for a capital loss at the end of the year?

A stock that has little or no track record is referred to as a ______

"Most people cannot successfully time the market" means ____

A "bull market" is one that is declining in value

Diversifying your investments results in _____

Insiders (like corporate executives) cannot legally buy/sell stock in their business.

Profit made from trading securities, such as stocks and bonds, is referred to as a capital gain

An IPO (initial public offering) is heavily regulated by the SEC

When talking about investments... "the higher the risk, the higher the potential reward"

Money market accounts are a more liquid investment than mutual funds.

"Putting all your eggs in one basket" would NOT be following this concept

Deposit agreement with bank for a fixed period of time, earning a small interest rate

Brokerage agents typically buy/sell stock for investors free of charge.

A unit of ownership in a corporation

If a company announces earnings that are more than expected, what happens to its stock price?

What is the advantage of investing directly in stocks?

Account with limited check-writing and higher interest than a regular savings account

If someone has info that other investors don't have & they act on it to their advantage, it's _

Investing in mutual funds is safer than buying individual stocks