Investment Options: Risks and Rewards Flashcards

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

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

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

<p>The difference between what you paid for an asset and your selling price.</p> Signup and view all the answers

<p>A stock whose owner has voting rights and receives dividends based on company profits, paid out after preferred stockholders receive their dividends.</p> Signup and view all the answers

<p>A stock whose owner has no voting rights, but receives a fixed dividend, paid before common stockholders receive their dividends.</p> Signup and view all the answers

<p>The world's largest stock market in terms of dollar volume.</p> Signup and view all the answers

<p>National Association of Securities Dealers Automated Quotations.</p> Signup and view all the answers

<p>Safe investments in the ownership of large, respected, and well-established companies.</p> Signup and view all the answers

<p>A daily average of the stock prices of thirty of the largest and richest blue-chip companies in the U.S., used to measure changes in stock market activity.</p> Signup and view all the answers

<p>Condition that exists when investors are optimistic about the economy and the market goes up.</p> Signup and view all the answers

<p>Condition that exists when investors are pessimistic about the economy and the market goes down.</p> Signup and view all the answers

<p>An indicator of overall stock market performance based on the average stock prices of 500 top U.S. companies, compiled by Standard &amp; Poor's.</p> Signup and view all the answers

<p>A list of the 500 U.S. companies with the highest earnings, published yearly by Fortune magazine.</p> Signup and view all the answers

<p>Contracts to buy or sell a specific commodity or financial instrument at a set price on a set date in the future.</p> Signup and view all the answers

<p>Bulk items such as grains, metals, and food that are bought and sold on a commodities exchange.</p> Signup and view all the answers

<p>Contracts that give the owner the right, but not the obligation, to buy or sell a stock or commodity at a set price on or before a specified date.</p> Signup and view all the answers

<p>High-risk stocks that typically sell for less than $1 per share when they are first offered.</p> Signup and view all the answers

<p>A promise to pay a certain amount on a certain date, issued by a corporation or government for the purpose of borrowing money.</p> Signup and view all the answers

<p>Bonds that must be repaid in full at maturity or when they reach their due date.</p> Signup and view all the answers

<p>Bonds that must be repaid in full at maturity. The interest earned on them is often tax-exempt.</p> Signup and view all the answers

<p>An investment in which people pool their money to buy stocks, bonds, real estate, or other assets selected by professional managers.</p> Signup and view all the answers

<p>Mutual funds that do not require an up-front fee.</p> Signup and view all the answers

<p>Mutual funds that charge a commission every time shares are bought or sold.</p> Signup and view all the answers

<p>Land and any houses or other buildings that are on it.</p> Signup and view all the answers

<p>Items that appeal to collectors and investors including stamps, works of art, antiques, and sports memorabilia.</p> Signup and view all the answers

<p>A retirement plan that is funded at least in part by an employer.</p> Signup and view all the answers

<p>Being eligible to receive a pension or other employer-contributed benefits usually after working at a company for a certain number of years.</p> Signup and view all the answers

<p>A retirement plan that allows employees to share in the company's profits.</p> Signup and view all the answers

<p>A type of profit-sharing plan in which the employer rewards employees with company stock instead of cash.</p> Signup and view all the answers

<p>A tax-deferred retirement plan funded by regular contributions from the employee.</p> Signup and view all the answers

<p>A tax-deferred retirement plan for employees of public schools and tax-exempt organizations.</p> Signup and view all the answers

<p>A personal retirement plan that permits individuals to set aside money; with the contributions and earnings not taxed until the funds are withdrawn.</p> Signup and view all the answers

<p>A tax-deferred retirement for small businesses and self-employed people, in which the employer makes contributions directly to employee IRA accounts.</p> Signup and view all the answers

<p>A person who works for a brokerage firm and who buys and sells stocks, bonds, and securities for clients.</p> Signup and view all the answers

<p>A person with the knowledge to give financial advice based on the client's goals, income, debts and assets, stage in life, and other personal factors.</p> Signup and view all the answers

<p>A detailed report about the financial condition of a company, published each year.</p> Signup and view all the answers