Investing Review

The purpose of investing is to build wealth and meeting financial goals. This is accomplished through

• Avoiding risk

• Purchasing safe and liquid products

• Regular investing and time

• Short term holdings

A reason that an individual may choose to use online investment services instead of a broker is that

• Online services are easy to understand for a beginner

• Online services offer a wider range of services such as estate planning and tax preparation

• Online services provide extensive research and personalized assistance

• Online services usually offer lower commission rates

Stock or shares that represent ownership in a company is known as a(an)

• Bond

• Equity

• Market

• Mutual Fund

This is a contract for buying and selling an asset such as commodities at a future price at a future date. This contract is both a right and an obligation for the buyer.

• Exchange Traded Product

• Fixed-Income Security

• Futures

• Options

This is a contract giving the buyer the right to buy in the future at a fixed price. This contract is a right but not an obligation.

• Exchange Traded Product

• Fixed-Income Security

• Futures

• Options

What is the largest physical equities market in the world?

• Dow Jones

• NASDAQ

• New York Stock Exchange

• S&P 500

What is the largest US electronic stock market?

• Dow Jones

• NASDAQ

• New York Stock Exchange

• S&P 500

This index is regarded as the single most predictive gauge of the large cap US equities market.

• Dow Jones

• Russell 2000

• S&P 500

• Wilshire 5000

This index consists of some of the largest publicly traded equities on the New York Stock Exchange and focuses blue chip companies as a predictor of market performance

• Dow Jones

• Russell 2000

• S&P 500

• Wilshire 5000

This type of market is characterized by a rise in stock prices and demonstrates an optimistic view on the performance of the market. Investors feel more comfortable buying and taking risks.

• Bear market

• Bull market

• Stable market

• Volatile market