Personal Finance SG 2 (1).txt

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What is an action that can produce financial gain or loss?
- Risk
What is combining investments with different risk levels and market charecteristics?

Web Def: act of introducing variety (especially in investments); "my broker recommended..."
- Diversification
What is the ease with which an asset can be turned into cash?

Web Def: The availability of liquid assets to a market or company.

Liquidity
What is the IRA
- Individual Retirement Accoun
- t
A professionally managed investment program funded by shareholders that trades in diversified holdings.
Retirement Savings Fund offered by employers; self managed
- 401K
What is a savings plan operated by a State or College to help set aside funds to defray future college costs?
- A 529 Plan
What is ownership in a corporation purchased in shares?

Stock
What is NASDAQ; NYSE & AMEX?

Stock Exchanges
What is Dow Jones Industrial Average?

30 large companies measuring NYSE performance
What is Standard & Poor's 500 (S&P 500)?

500 widely held companies whose stock performance serves as a broad measurmenet of changes in stock prices

ie. they rise/fall everyone else will too
What is NASDAQ Composite Index ($COMPQ)?

Concentration of (technology) companies; measures NASDAQ exchange performance

Web Def: An index that covers the price movements of all stocks traded on the NASDAQ Stock Market.
What is stock price/earnings per share?

Web Def: What is the ratio of a public company's price per share & its net income after taxes on a per share basis.
- P/E Ratio
- (Price Earnings Ratio)
What is money loaned to a business or government - has maturity date; paid back w/ interest?
- Bonds
What is issued by U.S. Government; low risk; maturity?

Treasury Securities
Who sells all investment products (stocks, bonds & funds)?

Web Def: an individual that arranges transactions between a buyer & a seller, & gets a commission when the deal is executed.

Brokers
What are 2 online brokers?
- www.ameritrade.com
- www.etrade.com

Author:	qwilliams
ID:	171557
Card Set:	Personal Finance SG 2 (1).txt
Updated:	2012-09-18 00:27:30
Tags:	Investments
Folders:
Description:	Investment Notes and SG
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