Investing Flashcards
0
Q
Return
A
Income you earn on investment
1
Q
Capital gain
A
Profit from selling stock at higher price
2
Q
Calculating return
A
Current-initial=return
Return/initial
3
Q
Rule of 72
A
Divide 72 by annual rate : years it’ll double
4
Q
Diversification
A
Investing in different companies
5
Q
How to make investing decisions
A
Values
Tolerance
Situation
6
Q
Preferred stock
A
Non voting
7
Q
Common
A
Voting
8
Q
Brokerage firm
A
Company that helps trade stocks
9
Q
Stock broker
A
Makes trades
10
Q
Stock exchange
A
Place to trade stocks
11
Q
WASDAQ
A
Electronic linking of brokerage
12
Q
Security exchange commission SEC
A
Checks for fraud
13
Q
Corporate bond
A
Corporation issues to raise $ to expand buis ness
14
Q
Retirement plans
A
401(k)
IRA’s
15
Q
Investment clubs
A
Pay investment fee to group then decide where $ should be invested
16
Q
Collectible a
A
Fads (beanie babies)
