Ch. 6 & 7 Review Investing & Retirement

Match the following

• outlines how to develop investment growth

• Personal Investment Plan

• spreading risk by putting money in different types of investments

• Diversification

• Purchasing a financial product or valuable item with the goal of increasing wealth over time in loss

• Investing

• collection of the investments a person has made

• Risk

• measure of the likelihood that something will be lost.

• Investment Portfolio

Tags

CCSS.L.9-10.4

Which of the following is not a factor of an investment portfolio?

• Level of Risk

• Degree of Volatility

• Liquidity

• Inflation

• Rate of Return

Match the following

• the amount of money earned on the investment, usually expressed as an annual percentage

• Appreciation

• ease with which an investment can be converted to cash without losing value

• Yield

• quick and unexpected changes in value or price

• Volatility

• the overall rise in prices that reduces the value of money and the return on investments

• Liquidity

• an increase in the value of an investment (growth)

• Inflation

Tags

CCSS.L.9-10.4

CCSS.RI.9-10.4

Match the following

• a share in the ownership of a corporation

• Securities

• financial assets issued by corporations, governments, and other organizations

• Stock

• income that results from selling an asset for more than the purchase price

• Dividend

• a portion of a company’s earnings that is paid to stockholders

• Capital Gain

• a loss of money that occurs when the selling price of an investment is less than the purchase price

• Capital Loss

Match the following

• is an agent who usually charges a commission to execute stock trades for clients

• Proxy

• of an investment is the price at which it can be bought or sold at a given point in time

• Market Value

• a stockholder’s written authorization to have someone else cast a vote on his or her behalf

• Primary Market

• exists when investors purchase securities from other investors rather than from the issuing company

• Secondary Market

• exists when a company first sells stock to the public. (IPO)

• Stock Broker

Tags

CCSS.L.9-10.4

Match the following

• a certificate of debt issued by a corporation or government

• Bond

• represents how much wealth you have, measured by assets like a house, cars, 401(k), minus debts.

• Mutual Fund

• earns a fixed rate of interest for up to 30 years

• EE Bond

• investment created by pooling money of many people and investing it in a security.

• Treasury Bills

• are short-term debts with maturities ranging from a few days to 52 weeks

• Net Worth

Tags

CCSS.L.9-10.4

Match the following

• an extended period of falling stock prices

• Vesting

• process of determining when money has been set aside in a retirement plan belongs to an employee

• Retirement

• facilitates the purchase and sale of financial securities

• Bear

• the period of life after ending a working or professional career

• Bull

• an extended period of rising stock prices

• Brokerage Firm

Match the following

• an employer sponsored plan that allows a % placed in a policy and matched per paycheck.

• 401k

• a non-profit employee retirement plan

• Annuity

• contract with an insurance company that provides regular income for a set period.

• 403b

• process of moving retirement savings from one qualified account to another

• ROTH

• the contributions are not deducted from the employee’s paycheck until after the taxes are calculated

• Rollover

Tags

CCSS.L.9-10.4

Match the following

• legal document that states a person’s wishes for his or her estate after death

• IRA

• arrangement in which one transfers assets to a trustee, who manages it on behalf of beneficiaries.

• Estate

• document that gives authority to another over one's financial and legal matters.

• Trust

• an individual retirement arrangement in which contributions are tax-deductible, but withdrawals are

• Power of Attorney

• estate consists of the assets and liabilities a person leaves when he or she dies

• Will

Match the following

• Legal process of settling affairs of an estate, paying final expenses.

• Beneficiary

• a person or group who receives the deceased person’s assets

• Probate

• any government system that provides monetary assistance to people with an inadequate or no income.

• Social Security