FPL VOCAB 10: Investment Vehicles

401k

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

• An employer sponsored plan for employees to invest for retirement.

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

• An investment fund managed by a professional that is diversified.

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

• Equity

• Liability

• Dividend

• Diversification

Of these accounts, which typically has the least amount of risk?

• Bond (corporate)

• Stocks

• Certificate of Deposit

• Bond (government)

ETF

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

• An employer sponsored plan for employees to invest for retirement.

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

• An investment fund managed by a professional that is diversified.

Mutual Fund

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

• An employer sponsored plan for employees to invest for retirement.

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

• An investment fund managed by a professional that is diversified.

Money Market Account

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

• An employer sponsored plan for employees to invest for retirement.

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

• An investment fund managed by a professional that is diversified.

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

• 401(k)

• Individual Retirement Account (IRA)

• Roth IRA

• ETF

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

• 401(k)

• Individual Retirement Account (IRA)

• Roth IRA

• ETF

Of these accounts, which typically has the greatest amount of risk?

• Bond (corporate)

• Stocks

• Certificate of Deposit

• Bond (government)

A share of ownership in a corporation.

• Stock

• Bond (corporate)

• Liability

• Equity