Income taxes are avoided on the capital gains, interest, and dividends
Income taxes are very low on the capital gains, interest, and dividends
High capital gains are guaranteed
High interest rates are guaranteed
An Initial Public Offering
An Initial First Offering
A Roth IRA
The buy price
They buy a financial product or asset.
They sell a financial product or asset.
The value of the asset increases.
The value of the asset decreases.
Options, futures, collectibles.
Cash, government bonds, bank accounts.
Real estate, stocks, high income bonds
CDs, real estate, collectibles.
Keep in the stock market.
Keep in a long-term bond.
Can turn into cash, but with a penalty fee.
Can turn into cash easily.
More of their money in capital preservation.
More of their money in capital appreciation.
All of their money in capital preservation.
All of their money in capital appreciation.
Varies, and is considered unearned income.
Is fixed, and considered unearned income.
Varies, and is considered earned income.
Is fixed, and considered earned income.
Money you hope to use for a down payment on a house ten years from now
Money for a new car in three or four years
Money for a winter ski trip in ten months
Money left over after budgeting all expenses and savings goals
Diversified asset allocation portfolio.
Non-diversified asset allocation portfolio.
U.S. Savings Bonds
U.S. Treasury bonds, notes and bills
State municipal bonds
U.S. Savings Bonds.
The stock of large, corporate companies.
The stock of small, start-up companies.
Works for a company to sell you its shares.
Can buy and sell shares for you.
Sells you his shares in a company.
Buys your shares in a company.
Double the return of bonds over the same period.
Slightly better than the return of bonds over the same period.
Equal to the return of bonds over the same period.
Half the return of CDs over the same period.
They are a form of indirect investing
They give the investor access to more diversity for less money
They offer less diversity than other investments
They are a dominant investment choice in many retirement accounts
Capital appreciation; capital preservation
IRA; Roth IRA
IRA; Employee Pension
It requires public companies to file quarterly and annual reports
It recommends new laws and rules to be passed by Congress
It sets the fees brokers can charge clients for buying stock
It takes legal action against wrongdoers
One dollar in the dividend paid
One percent of the price earnings ratio
One percent over the previous day's price of stock
One dollar in the price of the stock
Maximize risk for higher returns
Delay the return on the investment until a future date
Increase current cash flow
Increase the value of an asset