Investment Lingo 5

Question 1

Risk tolerance

Answer 1

Risk investor is comfortable with

Question 2

Risk capacity

Answer 2

Risk investor can take based on their financial situation

Question 3

Russel 2000 is a

Answer 3

Stock Market index

Question 4

Russel 2000 index tracks performance of

Answer 4

2000 small-cap stocks

Question 5

Russel 3000 made up of

Answer 5

Small,mid,large-cap stocks

Question 6

Russel 2000 is made up of most

Answer 6

Of the stock market

Question 7

Russel 2000 represents a portion of

Answer 7

Russel 3000

Question 8

Small-cap companies may experience

Answer 8

Larger growth that large-cap companies

Question 9

The more shares you purchase

Answer 9

The greater ownership you have in that company

Question 10

One who owns shares can vote

Answer 10

On shareholder elections

Question 11

Stock holder AKA

Answer 11

Shareholder

Question 12

Stockholders are also

Answer 12

Owners of the company

Question 13

Stock market is made up of

Answer 13

All publicly-traded stocks available for sale

Question 14

Stock Market is made up of _ sectors

Answer 14

11

Question 15

Example of 2 sectors

Answer 15

Healthcare

Information technology

Question 16

Stock split

Answer 16

Company splits each of its shares into 2 or more separate shares

Question 17

2 for 1 stock split for stock worth $100 per share

Answer 17

2 shares each worth $50

Question 18

Companies use stock splits as their stock prices rise to

Answer 18

Make shares more accessible to individual investors

Question 19

YTD stands for

Answer 19

Year-to-date

Question 20

YTD is often used to describe

Answer 20

Investment returns

Question 21

YTD returns are calculated based on

Answer 21

Profit since first day of the year

Question 22

S&P 500 is capitalization weighted, meaning

Answer 22

Companies with higher caps make up larger percentage of index

Question 23

Volatility is a measure of

Answer 23

Change in asset prices over a period of time