Finance Flashcard

Front

What is a mutual fund?

Back

An investment company

Front

What is stock?

Back

A share of a company owned by an investor.

Front

Which of the following is NOT a way to access checking account funds?
Checks,
Debit card,
Electronic banking,
Savings bonds

Back

Savings bonds

Front

What happens if you take your money out of a CD early?

Back

You pay a penalty

Front

What is the goal when selling shares of stock?

Back

To sell at a higher price

Front

What is a dividend?

Back

A portion of a company's profit paid to shareholders

Front

How does a mutual fund help reduce risk?

Back

By diversifying investments across many stocks

Front

What is the Standard & Poor’s 500 (S&P 500)?

Back

A stock market index

Front

What is considered the safest of all investments?

Back

Government bonds

Front

What is the purpose of an index in finance?

Back

To measure the performance of mutual funds