Investing Review

You can start investing with a small amount of money.

• yes

• no

• depends

Distribution of a portion of a company’s earnings, decided by the board of directors, to a class of its shareholders

• Interest

• Dividend

• Stock Split

• 401k

The benefit of diversification in your investments is:

• Reduced tax liability

• Increased risk

• More return

• Reduced risk

Savings accounts and money-market accounts are most appropriate for:

• Savings accounts and money-market accounts should be avoided since they carry high risk.

• Emergency funds and short term goals

Money that is invested, either tax deferred or tax free, within a retirement plan

• Social Security

• Stock options

• Dividends

• Tax favored dollars

In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:

• Roth IRA

• 401K

• Single stocks

• Dividends

The government agency responsible for regulating the stock market:

• FDIC

• IRS

• Securities and Exchange Commission

• FAFSA

Single stocks and mutual funds carry the same amount of risk.

• yes

• no

Company Xʹs board of directors has decided to issue a portion of its earnings to its shareholders. If you own stock in Company X, you can expect to receive a(n):

• Buy-out

• Investment

• Dividend

• Interest

Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money

• Interest free

• Risk

• Liquidity

• Cash buy-out