About This Quiz
Saving for retirement can be tough, to say the least. But if you think your nest egg is well-feathered, then this quiz shouldn't be a problem.Bondholders usually pay interest every six months. However, the interest that the bondholder accrues is on a day-to-day basis. When the bondholder sells the bond, the buyer pays the seller the market price plus the accrued interest.
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Bear markets are those that are in decline or have investors that are generally pessimistic and believe investments will fall. Bull markets are when stocks are increasing and investors are making money.
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Blue chip companies are usually large, national firms with a solid record of earnings. Blue chip stocks are generally worth more than other stocks.
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Disney, Microsoft and Walmart are ell-known companies and their stock is very expensive. Left Behind Games produces software for a niche market. In mid-January 2011 its stock was trading for less than $1.
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Annuities are a series of payments made periodically for a specific period. Insurance companies sell annuities that provide payments at specific intervals, usually during retirement.
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The chances of you buying that new BMW with a 520 credit score are slim and none.
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Whenever you sell something like a stock or a home in which you reap a profit, you are earning capital gains. You are required to pay capital gains taxes on most profits.
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There are two basic types of CDs, or Certificates of Deposit -- traditional and negotiable. CDs have a maturity date and an interest rate.
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A diversified portfolio includes a variety of investments including of stocks, bonds and mutual funds.
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Property is a better investment than motor vehicles because property will gain in value over the long haul. However, many people invest in classic cars.
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Holding companies own enough stock in other firms to control management and operations of those firms.
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Investment companies pool the funds of investors and use that money to buy various securities.
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Congress named the 401(k) plan, which allows employees to contribute to their retirement tax free, for a specific section of the Internal Revenue Service Code.
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IRAs give investors a huge tax benefit. Some IRAs defer taxes until investors withdraw the money.
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Those that have a Roth IRA will save oodles of cash because they pay taxes on their contributions, not on their withdrawals.
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Mutual funds are easy and inexpensive ways to diversify investments because they combine the money of small investors to buy stocks, bonds and other types of securities.
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Most penny stocks -- those that trade for less than $1 -- have less than $1 million in assets.
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A reverse mortgage allows a homeowner to receive tax-free, monthly payments based on the equity in their home.
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You won't be taxed or penalized for borrowing against your 401(k), however, you will need to pay the money back. If you simply withdraw the money before you retire, you will take a financial hit.
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Speculators try to predict the future in the hopes of making fast money.
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