Which of the following is generally true about 401(k) and 403(b) retirement plans?
All of the Above
What are dividends?
A distribution of a percentage of a company’s profit paid to stockholders.
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond ? Diversified mutual fund – Stock
When it comes to investing, what is the typical relationship between risk and return?
The greater the potential risk, the greater the potential return.
Why might a town decide to issue bonds?
To build new roads or bridges
What is the primary reason to issue stock?
To raise money to grow the company
Why is a high-quality bond typically considered a lower-risk investment than a stock?
A bond typically pays a fixed, predictable amount of interest each year.
When you buy a ____ , you are loaning money to an organization.
Which of the following would be considered the highest risk portfolio?
A portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds.
How can investors receive compounding returns?
By investing their earnings back into their original investment
Generally speaking, the _______ the risk, the _______ the potential return or loss.