Inflation is a general rise in prices that affects everybody.

Retained earnings are profits a company reinvests for expansion or research and development.

Corporate stock is a unit of ownership in a company.

A mutual fund is an investment in which investors pool their money to buy stocks, bonds, and other securities.

Fee-offset planners earn all of their money through the commission they make.

Tax-exempt income is taxed at a later date.

Income from rental properties cannot be taxed.

A prospectus discloses information about a company’s earnings, assets, and liabilities.

A capital loss is the sale of an investment for less than its purchase price.

Which risk component is most likely at fault when an investor’s stock becomes worthless?

Of the following investments, the one with the most predictable income is ____.

All of the following are possible sources of money to invest EXCEPT ____.

A corporation gets it equity capital from its ____.

Factors that affect financial markets are ____.

16. Which question should you ask when selling real estate?

Which is not a speculative investment?

The largest financial advisers are monitored by the ____.

Short-term capital gains are ____.

The purpose of the Dow Industrial Average is to ____.

Distribution of money, stock, or other property that a corporation sometimes pays to a stockholder

A company’s written pledge to repay a specified amount of money, along with interest

Gives the owner the advantage of receiving cash dividends before common stockholders receive any

The written pledge of a government or municipality to repay a specified amount of money with interest

The ability to buy or sell an investment quickly without substantially affecting its value

Money that can be accessed quickly to pay unexpected expenses

Income that is taxed at a later date

Profit from the sale of assets such as stocks, bonds, or real estate

____.

Income that is not taxed

Profits that are reinvested in the company