FIN310 Final

Classification of Stocks:

• Blue-chip

• Speculative

• Growth

• Decline

Investment Choices:

• Lending investments

• Ownership investments

• Stock investments

• Savings investments

Lending Investments

• Savings accounts and bonds that are debt instruments issued by corporations and the government

• Preferred stocks and common stocks that represent ownership in a corporation, along with income-producing real estate

Ownership Investments

• Preferred stocks and common stocks that represent ownership in a corporation, along with income-producing real estate

• Savings accounts and bonds that are debt instruments issued by corporations and the government

Income return:

• The amount of money spent on groceries
• Payments you receive directly from the company or organization in which you’ve invested

• The money earned from the number of hours worked in a week

• The price of a new car

Lending Investments:

• Maturity date

• Per value or principal

• Coupon interest rate

• Real estate

Ownership Investments:

• Real estate - your home, rental apartments and

  investments in income-producing property

• Illiquid - hard to sell off

• Stock- fractional ownership in a corporation

• Owner or equity holder - owns stock

• Dividend - a payment by a corporation to its

  shareholders

What is a PMI (Private Mortgage Insurance)?

• Insurance that protects the lender if the borrower stops making payments on the loan
• Insurance that covers the property taxes for the borrower
• Insurance that protects the borrower if the lender stops making payments on the loan
• Insurance that provides coverage for the home's contents

What is a Balance Sheet?

• A document that lists the prices of a company's products
• A report that details a company's employee salaries
• A statement that shows a company's marketing expenses
• A financial statement that shows a company's financial position at a specific point in time, including its assets, liabilities, and shareholders' equity.

What are possible retirement income sources?

• Inheritance, lottery winnings
• Part-time job, freelance work
• Selling personal belongings, reverse mortgage
• Pension, 401(k), Social Security, earnings