Study_guide_Ex_2_SS10

Study_guide_Ex_2_SS10 - What is an index? Identify them....

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Study guide Exam #2  SS10 Savings Identify places to park money for daily expenses, debt  payments or investing. Checking account, Savings account, Money Market Account  or CD What is FDIC insured and who benefits from  it? What is APR and APY?  How are they different? Money placed in “safe” places for savings are still at risk.  At  risk of what? Know laddering of CD’s and why/when to ladder. Bonds Know the language of bonds.  What is inflation     risk? Par, discount, premium, call, coupon rate, maturity  date Types of bonds Government, corporate, municipals Who rate bonds?  What are their ratings?  What is a junk  bond? What is a zero coupon bond? Stocks
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Types of stocks; common and preferred. Who rates stocks? What is a stock split? Investments: What is an exchange?  Identify them
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Unformatted text preview: What is an index? Identify them. What information is in a prospectus? Why would an investor read a prospectus? Identify goals of mutual funds by their names. i.e. Balanced, Growth, Income, Sector etc. What is a mutual fund? Why would you invest in one? What fees are included in mutual funds? Internally and externally? What are ETF's and how are they different than mutual funds? Know and compute dollar cost averaging. Know language of investing capital gains, dividends, distributions, equity, P/E ratios, conservative, aggressive investing, bear and bull markets (what do they mean) Asset allocation of different kinds of investors; conservative or aggressive. Types of investment professionals and when to use which one....
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Study_guide_Ex_2_SS10 - What is an index? Identify them....

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