Introduction to the Stock Market

Cons

________: actively managed ETFs have higher fees, no downside protection, diversification is limited (only 1 industry)

ETFs

________= basket of stocks to mimic a certain market sector that trade on exchange.

Market cap

________= 7.56B* $ 216.02= $ 1.633T.

Mutual funds

________= pools of money from the public to buy securities.

Pros

________: access to many stocks, low expense rates, easy to operate.

Bonds

________ have 5.3 % return.

REITs

________= a company that owns, operates, or finances income- producing real estate.

DRIP

________: Dividend Reinvestment Program.

Companies

What are typically measured by their market cap? Answer with a single words or term.

Mid Cap

________: More established track record, can still be acquired.

Blue chip stocks

________ are generally large- cap stocks, meaning they have a market valuation of $ 10 billion or more.

Large cap

Types of caps: ________: huge, well established companies.

Index funds

________= basket of stocks to mimic a certain market index.

Cons

________: hard to diversify, more effort /time needed.

Pros

________: access to historically inaccessible asset class, liquid, stable cash flow through dividends,

index fund

What is an investment that tracks a market index, typically made up of stocks or bonds? Answer with a single words or term.

Cons

________: higher fees, not FDIC insured, large cash holdings.

Pros

________: liquid, diverse, professional management, lots of options (balanced, fixed- income, money market, income, etc .)

Pros

________: reduced fees, no management fee, complete control, easy managing of taxes.

Cons

________: no control over holdings, no downside protection, lack of strategies.