Investment Flashcards
Short Term, Intermediate/Long Term, Aggressive
Bond Classify Categories
Large Cap, Small/Mid Cap, International
Stock Classify Categories
Fed, SEC and FINRA
3 Primary Financial regulators
Interest rate goes down - cost goes up
Interest rate goes up - cost goes down
Relationship between interest rates and prices
Yields go down - price goes up
Yields go up - price goes down
Relationship between bond yields and prices
Move in same direction
Relationship between interest rates and bond yields
90 Day treasury bills, Money Market Accts, Bankers Acceptance, Negotiable CD’s, Commercial Paper
Types of MMKT/Cash Securities
Tracks large growth stocks
Emphasis on innovation technology
global index
3 Characteristics of the NASDAQ
Higher Dividends
Low EPS
Low P/E
Characteristics of Value
No Dividends
High EPS
High P/E
Characteristics of Growth
Aggressive Stocks Max 70%
Moderate Stocks min 31% max 69%
Conservative Stocks max 30%
“Rule of Thumb” Asset Allocation