E1-5 Financial Investments

A tradable financial asset

• Dividend

• Liquidity

• Risk

• Security

The chance that a loss will occur

• Dividend

• Liquidity

• Risk

• Security

The ease with which an asset can be converted into cash without affecting the asset's value

• Dividend

• Liquidity

• Risk

• Security

A portion of a company's profit paid to its shareholders.

• Dividend

• Liquidity

• Volatility

• Tax Deferred

The tendency to change rapidly and unexpectedly

• Dividend

• Liquidity

• Volatility

• Tax Deferred

Not federally taxed until some point in the future

• Dividend

• Liquidity

• Volatility

• Tax-Deferred

Which of the following is considered a low-yielding and safe investment? (Check all that apply)

• savings account

• bonds

• stocks

A __________ is also known as a pension plan.

• 401(k)

• defined contribution plan

• defined benefit plan

• annuity

________ are sold by insurance companies.

• Pensions

• 457 plans

• Roth IRAs

• Annuities

What is the difference between traditional and Roth 401(k) plans?

• contribution limitations

• withdrawal penalties

• how they are taxed

• required years of service