Investments Exam Flashcards
Corporate stock
Unit of ownership in a company
Diversification
Tributing your money through variety of investments
Stockholders
Investors who own shares of stock in a company
Preferred stock
A non voting share of stock with a fixed dividend
Common Stock
A voting share that does not pay a set dividend
Brokerage firm
A company that specializes in helping people buy and sell stocks
Stock exchange
Where orders to buy and sell stock are sent and carried out (New York stock exchange)
Nasdaq
Electronic system that links brokerage firms
Junk bonds
Corporate bonds that are high risk
Mutual fund
A business that pools money from people to invest in many ways
Tax deffered
Postpone paying tax on he income you invest until you retire
401(k) plan
Tax deferred retirement plan that many employers offer their employees
Individual retirement account (IRA)
A personal savings plan with deferred tax benefits
3 ways investors buy and sell a stocks
NASDAQ, Stock exchange, internet
4 advantages to mutual funds
Diversification, professional management, minimal transaction cost, extra services
