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Questions and Answers
A(n) _ is a payout of net profits from a company to shareholders.
A(n) _ is a payout of net profits from a company to shareholders.
dividend
The S&P 500 is one example of a stock market index.
The S&P 500 is one example of a stock market index.
True (A)
Giving your money, time, or property to an organization that helps other people who are in need is called _ giving.
Giving your money, time, or property to an organization that helps other people who are in need is called _ giving.
charitable
In investing 'diversification' means to _ your investment types throughout your portfolio.
In investing 'diversification' means to _ your investment types throughout your portfolio.
An extended time of falling stock values is referred to as a(n) _.
An extended time of falling stock values is referred to as a(n) _.
Which is a major aspect of estate planning?
Which is a major aspect of estate planning?
When it comes to picking investments, the higher the _, the greater your chance of losing money.
When it comes to picking investments, the higher the _, the greater your chance of losing money.
A Qualified Retirement Savings Plan is _.
A Qualified Retirement Savings Plan is _.
A _ is also known as a collection of investments.
A _ is also known as a collection of investments.
_ refers to the monetary gain or loss of an investment over time.
_ refers to the monetary gain or loss of an investment over time.
Owning stock means you own a small piece or pieces of a company.
Owning stock means you own a small piece or pieces of a company.
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Study Notes
Financial Terms and Concepts
- A dividend is a distribution of net profits from a corporation to its shareholders, providing them with a return on their investment.
- The S&P 500 is a prominent stock market index that reflects the performance of 500 large companies in the U.S., serving as a benchmark for the overall stock market.
- Charitable giving involves donating money, time, or assets to organizations that assist those in need, supporting community welfare and social causes.
Investment Strategies
- Diversification in investing means to spread various types of investments across a portfolio, reducing risk by not placing all funds in a single investment type.
- A bear market is characterized by a prolonged decline in stock values, typically defined as a drop of at least 20% from recent highs.
Estate Planning Essentials
- A crucial component of estate planning is preparing a will, which outlines how an individual's assets will be distributed after their death.
Risk and Returns
- In investment decisions, risk refers to the possibility of losing money; generally, the higher the risk, the greater the potential for loss.
- A Qualified Retirement Savings Plan is an employer-sponsored retirement plan that benefits from special tax treatments, encouraging long-term saving for retirement.
- A portfolio is a collection of investments held by an individual or institution, reflecting their financial strategy and risk tolerance.
- ROI (return on investment) quantifies the financial gain or loss from an investment relative to its cost, serving as a crucial metric for evaluating investment performance.
Ownership in the Market
- Owning stock signifies that an individual holds a fractional ownership in a company, allowing them to benefit from the company's growth and profits.
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