Week 3 Flashcards
Preferred stock
Safer, you will receive a fixed dividend
Common stock
Voting- basic ownership in a company
Dividends
Profit from stock
New York stock exchange NYSE
.
NASDAQ
Tech stocks
Dow
Jones industrial average for top 30 stocks-averaged day to day
Bull market
Good, prices go up
Bear market
Bad, prices go down
Collectibles
Items or things people collect that they think may be or become valuable
401 k
retirement savings plan allows a worker to save for retirement and have the savings invested
403 b
a tax-advantaged retirement savings plan available for public education organizations, some non-profit employers
Brokers
A person who buys and sells goods or assets for others.Arrange or negotiate (a settlement, deal, or plan): “attempts to broker a cease-fire”.
Financial advisors
Financial advisors typically provide clients/customers with financial products and services, depending on the licenses they hold and the training they have. For example, an insurance agent may be qualified to sell both life insurance and variable annuities.
Traditional economy
Decisions about what to produce and how much is based on traditional customs and beliefs. Very rare, few exist in today’s world
Command economy
Decisions about what to produce and how much is decided by the govt (central)
Govt leaders control all resources and make all decisions–communism
Market economy
Decisions about what to sell and how much are decided by individuals acting in their own self interest. Aka a capitalist system, key characteristic is free market
Mixed economy
A combination of command and market systems. i.e. china
Demand
Quantity of particular good that consumers are willing to buy. Demand for a product is not a fixed number
Law of demand
When price item goes down. Demand goes up. When price goes up, demand goes down.
Supply
Quantity of a particular item that producers are able to make available for sale.
Law of supply
When price of product goes up, supply goes up. When price goes down, supply goes dowm
Equilibrium
For every product there is a price where demand will equal supply.
What taxes do you pay?
Income-any income you earn is taxed
SS-pay for the Ss program taken from paycheck(FICA)
Sales- tax on goods and services purchased
Excise- certain goods like tobacco and alcohol
Property- tax on value of land and buildings owned
Estate and gift- tax based on value of a persons property after death
Business or license tax- fees to drive a car, hunt, fish
Customs, duties, and tariffs- takes on goods imported from other countries.
Types of taxes: proportional, progressive, and regressive
Proportional- same % taken from everyone’s income (flat tax)
Progressive- larger % taken from a higher income than from lower income- the more you make, the more they take.
Regressive- a larger % of the income of lower income people than higher income people.
Tariff
Most common form of trade restriction-a tax on imported goods.
Quota
Govt. limit on quantity or value of certain imported items that tend to raise consumer prices
Embargo
Govt order prohibiting trade. Might be on a product or against a country
Protectionism
Trade restriction to protect domestic businesses
GATT
For removing trade barriers
NAFTA
Allows for easier trade between the US, Canada, and Mexico.
Vested
How influences impact our behavior
Consumer
Us, everyone who buys a good or uses services are consuming
