Wall Street Investment Final Exam
Questions and Answers5
6 types of retirement accounts - ANSWERS-401(k) Plan, 401(k) Matching, 403(b) Plan,
Traditional (Regular) IRA/Roth IRA/Rollover IRA, Annuity
What is a mortgage? - ANSWERS-type of loan used to buy property
Why do people invest in real estate? - ANSWERS-Low volatility, diversification + protection,
inflation hedging, the power of leverage
REIT - ANSWERS-Real Estate Investment Trust- Company that owns, Operates, or finances
income-producing properties
RELP - ANSWERS-Real estate limited partnership, an entity formed to buy and hold a portfolio of
properties or sometimes just one, 2 PEOPLE, exist for a finite number of years
REIG - ANSWERS-Real Estate Investment Group; almost like small mutual funds for rental
properties, if you want to own a rental property but don't want the hassle of being a landlord
then it's the solution for you; consists of 3 or more people
Growth stocks - ANSWERS-are from companies who have a consistent record of relatively rapid
growth and earnings in all economic conditions
Income stocks - ANSWERS-pay higher than average dividends because the company chooses to
retain only a small portion of its profit
, Value stocks - ANSWERS-are from companies which have a low market price considering their
historical earning records and value of current assets
Countercyclical stocks - ANSWERS-(defensive) are companies which give consistent returns even
when the economy is suffering because their products are always in demand
Cyclical stocks - ANSWERS-are greatly influenced by changes in the economic business cycle. If
the economy is doing poorly, so is the stock.
Speculative stocks - ANSWERS-are from companies with potential for substantial earnings in the
future. These stocks are very high risk, but very profitable if the company grows.
Blue-chip stocks - ANSWERS-are from nationally recognized companies, which dominate the
industry often having annual revenue of $1 billion or more
Penny Stocks - ANSWERS-stocks that are under $2.00 normally and trade on the OTC markets
What is a Common stock? Give an example - ANSWERS-Shares or units of ownership in a public
corporation, EX; Mcdonalds
What is Preferred stock? - ANSWERS-Shares which pay fixed dividends & have priority over
common stock
What is an Stock Dealer? - ANSWERS-a securities professional who buys and sells shares of stock
for their own account
stock trader - ANSWERS-trades on behalf of a company
Questions and Answers5
6 types of retirement accounts - ANSWERS-401(k) Plan, 401(k) Matching, 403(b) Plan,
Traditional (Regular) IRA/Roth IRA/Rollover IRA, Annuity
What is a mortgage? - ANSWERS-type of loan used to buy property
Why do people invest in real estate? - ANSWERS-Low volatility, diversification + protection,
inflation hedging, the power of leverage
REIT - ANSWERS-Real Estate Investment Trust- Company that owns, Operates, or finances
income-producing properties
RELP - ANSWERS-Real estate limited partnership, an entity formed to buy and hold a portfolio of
properties or sometimes just one, 2 PEOPLE, exist for a finite number of years
REIG - ANSWERS-Real Estate Investment Group; almost like small mutual funds for rental
properties, if you want to own a rental property but don't want the hassle of being a landlord
then it's the solution for you; consists of 3 or more people
Growth stocks - ANSWERS-are from companies who have a consistent record of relatively rapid
growth and earnings in all economic conditions
Income stocks - ANSWERS-pay higher than average dividends because the company chooses to
retain only a small portion of its profit
, Value stocks - ANSWERS-are from companies which have a low market price considering their
historical earning records and value of current assets
Countercyclical stocks - ANSWERS-(defensive) are companies which give consistent returns even
when the economy is suffering because their products are always in demand
Cyclical stocks - ANSWERS-are greatly influenced by changes in the economic business cycle. If
the economy is doing poorly, so is the stock.
Speculative stocks - ANSWERS-are from companies with potential for substantial earnings in the
future. These stocks are very high risk, but very profitable if the company grows.
Blue-chip stocks - ANSWERS-are from nationally recognized companies, which dominate the
industry often having annual revenue of $1 billion or more
Penny Stocks - ANSWERS-stocks that are under $2.00 normally and trade on the OTC markets
What is a Common stock? Give an example - ANSWERS-Shares or units of ownership in a public
corporation, EX; Mcdonalds
What is Preferred stock? - ANSWERS-Shares which pay fixed dividends & have priority over
common stock
What is an Stock Dealer? - ANSWERS-a securities professional who buys and sells shares of stock
for their own account
stock trader - ANSWERS-trades on behalf of a company
