Stock Market Test - Consumers Ed

When an investor purchased securities through a broker they need to pay this sales fee.

Load

This investment equation is used to calculate the estimated timeframe when an investment will double.

Rule of 72

Charles Schwab, Robinhood, Edwards Jones, and Robo Advisors are examples of this system to help people trade.

Brokerage Firm

This is used to calculate the efficiency of an investment.

Return on Investment or ROI

This type of investment strategy involves planned and regular investing.

Systematic Investing

The chance an investment will decrease in value.

Risk

This is considered a safe investment with a person loaning a government or municipality money paid back with interest.

Bond

This type of risk refers to political change or instability in the government. 

Political Risk

This investment strategy will help reduce the risk of a portfolio.

Diversification

Coins, baseball cards, artwork are an example of this risky investment.

Collectibles

Unit of ownership in a corporation.

Stock

These stocks are often purchased because of their consistant history of paying high dividends.

Income Stocks

This type of security is considered safe becasue it is a combination of stocks.

Mutual Fund

This risky type of stock are companies that are young and often small corporations.

Emerging Stock

Unlike the NYSE, this brockerage firm is completely computerized.

NASDAQ

This part of a stock ticket shows the opening bell price.

Open

APPL is an example of Apple’s.

Stock Symbol

This is the measurement of the number of shares being traded.

Average Volume

This stock ticket piece is used to determine if a company is under or overvalued.

PE Ratio

This piece of a stock ticket determines a companies profitatability.

Earnings per Share or EPS

This type of retirement savings account is taxed when you withdrawl.

401k

This type of retirement savings has the investor put money into the account taxed so their withdrawel will be tax free.

Roth IRA

This type of retirement savings account is with non for profit organizations.

403b

This is one advantage of a 401k, when a company will also contribute to your retirement.

Company Match

When you are young the greatest advantage you when investing is time because of what type of interest?

Compound Interest