Personal Finance Economics

Question 0

What is the order of safest to riskiest

Answer 0

Savings
Checking with interest
Money markets 
CD's 
Bonds 
Mutual funds 
Stocks

Question 1

What does the rule of 72 say

Answer 1

Take the rate of return and divide it into 72 and the answer shows how long the money takes to double.

Question 2

Bull market

Answer 2

Shock market going up

Question 3

Bear market

Answer 3

Stock market going down

Question 4

NYSE

Answer 4

New York stock exchange 1st

Question 5

NASDAQ

Answer 5

Electronic market 2nd

Question 6

AMEX

Answer 6

Purchased by NYST 3rd

Question 7

OTC

Answer 7

Over the counter market 4th

Question 8

Dow Jones

Answer 8

Index that shows 30 large companies have traded

Question 9

S&P 500

Answer 9

Standard and Poor’s compromises 500 large cap companies covering about 75% of the American equity market

Question 10

Wilshire 5000

Answer 10

Total stock market index (4100)

Question 11

Common stock

Answer 11

Represents ownership in a company and pays out dividends

Question 12

Dividends

Answer 12

The company’s profit split up among its shareholders

Question 13

Fixed dividends

Answer 13

Gaur teed money

Question 14

Preferred stock

Answer 14

PF

Not everyone can buy this stock but the one’s who can receive special treatment

Question 15

Does one care about dividends in a growth fund?

Answer 15

No

Question 16

Does one care about dividends in an income fund?

Answer 16

Yes

Question 17

Penny stock

Answer 17

Anything below $1.00

Question 18

What is a bid price and when is it important

Answer 18

The highest amount someone is willing to pay important when selling

Question 19

What is an asked priced and when is it important?

Answer 19

The lowest price the seller is willing to accept important when buying

Question 20

Market order

Answer 20

Buying or selling at the best price available

Question 21

Limit order

Answer 21

But or sell at a certain price allows order to be outstanding before being canceled. Day order and GTC order

Question 22

Day order

Answer 22

Limit order that stays until the end of the day, if the end of the day is up they will neither buy nor sell it

Question 23

GTC order

Answer 23

Limit order that is good until canceled and stays until you cancel it up to 60 days

Question 24

Round lot order

Answer 24

Orders that occur in multiples of 100

Question 25

Value stocks

Answer 25

Very cheap

Question 26

Odd lot order

Answer 26

Less than multiples of 100, more expensive because company has to find someone else to add up to 100

Question 27

Load

Answer 27

A sales commission paid to a stock broker

Question 28

What is the most common load

Answer 28

1-2%

Question 29

Will most stock brokers what to sell you no load funds?

Answer 29

No because they won't make money

Question 30

Stock splits

Answer 30

To encourage trading, a company reduces the price of their shares

Question 31

Why would a company do a reverse stock split

Answer 31

To make themselves seem more prosperous

Question 32

Capital gains

Answer 32

The profit you make when you sell something and you have to pay income tax on them

Question 33

Roth IRA

Answer 33

An IRA account where pretax advantages are not offered but you do not have to pay capital gains.

Question 34

401 K

Answer 34

Lets workers invest a piece of their paycheck before taxes are taken out

Question 35

When are taxes paid on 401 K contributions

Answer 35

When money is withdrawn

Question 36

Matching funds

Answer 36

Some companies will match up to 6% of your salary if you put in 6% into a retirement fund

Question 37

Vesting schedules

Answer 37

The amount of time you have to be at a certain job in order to receive your matching funds

Question 38

Who is offered 403 B's?

Answer 38

Employees of tax exempt organizations

Question 39

Does an IRA have a pretax advantage? Capital gain taxes?

Answer 39

It has a pretax advantage but you do have to pay capital gains tax

Question 40

Do Roth accounts have to pay capital gains tax?

Answer 40

No but they don't have a pretax advantage

Question 41

What is a 529 and do you have to pay capital gains tax?

Answer 41

A plan for saving for college and no