Podcast
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
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.
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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) _.
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Which is a major aspect of estate planning?
Which is a major aspect of estate planning?
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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.
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A Qualified Retirement Savings Plan is _.
A Qualified Retirement Savings Plan is _.
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A _ is also known as a collection of investments.
A _ is also known as a collection of investments.
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_ refers to the monetary gain or loss of an investment over time.
_ refers to the monetary gain or loss of an investment over time.
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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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Description
Test your knowledge of essential financial terms, investment strategies, and estate planning essentials. This quiz covers key concepts like dividends, diversification, and charitable giving. Perfect for anyone looking to enhance their financial literacy and investment acumen.
