Investment Lingo 2

Question 1

Capital gain/loss can help you

Answer 1

Determine your rate of return on an investment

Question 2

Capital gains usually subject to

Answer 2

Taxes

Question 3

Capital losses reduce

Answer 3

Your tax burden

Question 4

Cash (investing)

Answer 4

Any money stored in bank account or short-term investments

Question 5

“Cash” considered

Answer 5

A safe investment

Question 6

“Cash” is an important part of

Answer 6

A diversified portfolio

Question 7

Certified Financial Planner (CFP)

Answer 7

Gold standard financial advisor, provides comprehensive financial services

Question 8

Diversification

Answer 8

Spreading funds in investment portfolio across many assets

Question 9

Diversification reduces

Answer 9

Risk

Question 10

Dividends often distributed on a _ basis

Answer 10

Quarterly

Question 11

Not all companies issue

Answer 11

Dividends

Question 12

Investors who receive dividends can

Answer 12

Reinvest instead of pocketing

Question 13

Dollar-cost average is the process of

Answer 13

Making equal investments at regular intervals long period of time

Question 14

Dollar-cost average is the opposite of

Answer 14

Timing the market

Question 15

Dollar-cost method opposite of timing the market because

Answer 15

Maintain steady no matter what market is doing

Question 16

Dollar-cost average is considered

Answer 16

One of the best ways to gain wealth over time

Question 17

EBITA Stands for

Answer 17

Earnings before interest, taxes, and amortization

Question 18

EBITA is a term used to describe

Answer 18

The profitability of an investment, especially when compared to others in your portfolio

Question 19

EBITA is often thought to give more accurate picture of

Answer 19

How profitable a company is

Question 20

Emergency fund

Answer 20

Money you have set aside for emergency purposes

Question 21

Emergency fund recommended for _ or _ months

Answer 21

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