FPL VOCAB 10: Investment Vehicles

Front

401k

Back

An employer sponsored plan for employees to invest for retirement.

Front

A risk management technique that mixes a variety of investments to maximize growth and reduce risk

Back

Diversification

Front

Of these accounts, which typically has the least amount of risk? Bond (corporate), Stocks, Certificate of Deposit, Bond (government)

Back

Certificate of Deposit

Front

ETF

Back

A pooled investment which typically follows a market index or sector.

Front

Mutual Fund

Back

An investment fund managed by a professional that is diversified.

Front

Money Market Account

Back

A long-term savings account which requires a high minimum balance.

Front

An individual retirement investment account where investment growth is tax free but deposits are taxed.

Back

Roth IRA

Front

An individual retirement investment account where deposits are made tax free but withdrawals are not.

Back

Individual Retirement Account (IRA)

Front

Of these accounts, which typically has the greatest amount of risk? Bond (corporate), Stocks, Certificate of Deposit, Bond (government)

Back

Stocks

Front

A share of ownership in a corporation.

Back

Stock