| A | B |
|---|
| reasons company issue stock | to raise money to start up their business or to help pay for ongoing activities |
| 401k and IRA are both | salary reduction plan |
| responsible for paying dividends if seen fit | corporation |
| Mutual funds, stocks, and bonds | types of securities |
| type of stock is issued by a corporation whose potential earning may be higher than the average earnings predicted | growth stock |
| Buying stock in real-estate would be an example of buying | cyclical stock |
| stock usually sells for less than $1 a share | penny stock |
| type of company would typically issue penny stock | bankrupt, new, unsteady |
| type of retirment savings where contributions by employee are often matched by employer | 401k |
| maximum dollar amount you can contribute to your ROTH IRA per year | $5,000 |
| type of retirement accounts that are tax-deffered | IRA accounts and 401k accounts |
| you should never do this with your retirement savings | take out a loan against it |
| one of the only retirement accounts you do not have to take money out at age 70 1/2 | ROTH IRA |
| Companies that issue this type of stock are able to continue paying dividends even in periods of economic decline | defensive stock |
| a market condition that occurs when investors are optimistic about the economy and buy stocks | bull market |
| a marketplace where brokers who represent investors meet to buy and sell securities | securities exchange |
| a market condition that occurs when investors are pessimistic about the economy and sell stocks | bear market |
| a collection of all the securities held by an investor | portfolio |
| a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange | Over the Counter (OTC) |
| an electronic marketplace where securities are purchased and sold | NASDAQ |
| A high risk investment that usually occurs when a company sells stock to the general public for the first time | IPO |
| company that sells its shares openly in stock markets, where anyone can buy them | public corporation |
| company that issues stock to a small group of people | private corporation |
| income that is taxed at a later date | tax-differed income |
| the process of spreading your assets among several different types of investments to reduce risk | diversification |
