Personal Finance: Intro To Investing

FDIC a government agency that insures depositors’ money
back end load fees paid to mutual fund companies when selling a fund
expense ratio annual percentage a mutual fund takes as payment
inflation rise in prices that effectively makes cash have less buying power
yield for a stock, an annual dividend divided by share price
YTD (year to date) comparison of how a mutual fund has done compared to its value of the first year
front end load fees paid to mutual fund company as entry requirement into certain mutual funds
savings account safe, low return investment available from banks with no minimum deposit
dividend quarterly payout by a company to all shareholders
In a savings account , the account value should rise, not decline true
FDIC was set up shortly after financial crisis of 2008 false
money market account has a minimum depsoit requirement true
inflation is number set by the government that causes prices to rise false
owing individual stocks is like owning small share to company true
commission fees is paid to broker for negotiating a sale true
financial goals helps investors concentrate on a goal, instead of immediately spending money true
saving accounts at banks are protected by FDIC insurance true
saving accounts offer a higher yield than money market accounts false
mutual fund companies rarely charge customers fees false
all investments eventually increase in value if held longer false
mutual funds is a pool of stocks, bonds be other securities managed by an investment company true
saving accounts are safe investments, but do not pay high interest rates true
each stock transaction results in commission fee to the brokerage true
yield for saving accounts is interest earned annually true
FDIC coverage protects each account holder up to $500,000 false ($250,000)
stocks and mutual fund investment have no guaranteed return true
banks that are FDIC insured pay a percentage of their deposit to pay for the insurance true
scam or fraud tell you that you have won a lottery you never entered for true
scam or fraud may try to get you to disclose your account of personal info true
investing in mutual funds or stocks is less risky than investing in a savings account false

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