FIN 235 UNCW Exam 4 – Study Guide, Practice Questions & Exam Review
Why is it important for women to learn about investing? - ✔✔1) They live longer, on average 7
years longer than men.
2) They earn less on average, even though the gap is narrowing.
3) They spend fewer years in the work force - averaging 11 fewer income earning years as a
result of career breaks to care for children and aging parents
Women over 65 are _____ times more likely to live out their golden years in poverty than men. -
✔✔2
If you own your finances then you - ✔✔own your life
Point of maximum financial risk - ✔✔euphoria
point of maximum financial opportunity - ✔✔despondency-depression
How does the stock market build wealth? - ✔✔1) capital gains
2) provides liquidity (ability to turn into cash)
3) extraordinary profit potential through appreciation plus dividends
4) cumulative effect through reinvestment of capital gains and dividends
5) the miracle of compounding
Risk/ Reward relationship - ✔✔the investment vehicle pyramid
Initial Public Offerings (IPO's) - ✔✔the first time a company offers its stock to the public
constitutes an initial public offering. Every public company at one time in its history had an IPO
, Major stock exchanges: - ✔✔1) registered exchanges: called because they have to be
registered with the Securities and Exchange Commission. Ex: NY Stock Exchange
2) NASDAQ
New York Stock Exchange - ✔✔-largest registered exchange, by market capitalization
-founded in 1792
-accounts for more than half the annual trading volume of all stocks traded in America
-volume reaches 1.46 billion shares/day`
other stock exchanges: - ✔✔-regional
-international
NASDAQ - ✔✔-self-regulated exchange
-consists of hundreds of individual brokers located throughout the country communication
through computer systems
-no physical location
Four phases of your investment life cycle: - ✔✔1) accumulation -jobs, spouse, kids
2) consolidation/ mid-late career- mid 40s-50s, preserving for retirement
3) spending- vacations, 2nd homes etc
4) gifting phase- investment returns, giving stocks/property/assets away
Market capitalization - ✔✔# of shares outstanding X $ per share
-measure of the total value investors place on a public company
large-cap - ✔✔companies with market caps of $10 billion+
Why is it important for women to learn about investing? - ✔✔1) They live longer, on average 7
years longer than men.
2) They earn less on average, even though the gap is narrowing.
3) They spend fewer years in the work force - averaging 11 fewer income earning years as a
result of career breaks to care for children and aging parents
Women over 65 are _____ times more likely to live out their golden years in poverty than men. -
✔✔2
If you own your finances then you - ✔✔own your life
Point of maximum financial risk - ✔✔euphoria
point of maximum financial opportunity - ✔✔despondency-depression
How does the stock market build wealth? - ✔✔1) capital gains
2) provides liquidity (ability to turn into cash)
3) extraordinary profit potential through appreciation plus dividends
4) cumulative effect through reinvestment of capital gains and dividends
5) the miracle of compounding
Risk/ Reward relationship - ✔✔the investment vehicle pyramid
Initial Public Offerings (IPO's) - ✔✔the first time a company offers its stock to the public
constitutes an initial public offering. Every public company at one time in its history had an IPO
, Major stock exchanges: - ✔✔1) registered exchanges: called because they have to be
registered with the Securities and Exchange Commission. Ex: NY Stock Exchange
2) NASDAQ
New York Stock Exchange - ✔✔-largest registered exchange, by market capitalization
-founded in 1792
-accounts for more than half the annual trading volume of all stocks traded in America
-volume reaches 1.46 billion shares/day`
other stock exchanges: - ✔✔-regional
-international
NASDAQ - ✔✔-self-regulated exchange
-consists of hundreds of individual brokers located throughout the country communication
through computer systems
-no physical location
Four phases of your investment life cycle: - ✔✔1) accumulation -jobs, spouse, kids
2) consolidation/ mid-late career- mid 40s-50s, preserving for retirement
3) spending- vacations, 2nd homes etc
4) gifting phase- investment returns, giving stocks/property/assets away
Market capitalization - ✔✔# of shares outstanding X $ per share
-measure of the total value investors place on a public company
large-cap - ✔✔companies with market caps of $10 billion+
