Stock Market Analysis & Personal Finance:
Jeopardy questions
December 2015
Category: Benchmarks
$100 The most popular benchmark for US Large Cap Stocks S&P 500
$200 This Greek alphabet letter is used to describe market movements of a
benchmark index Beta
$300 This Greek alphabet letter is used to describe a manager’s ability to select
securities which will outperform their benchmark index Alpha
$400 A primary advantage of investing in index funds rather than active
managers Lower fees
$500 This downtown New York company maintains the most popular index for
non-US stocks, and was also the summer internship for one of Mr. B’s nephews
when he was in college MSCI (Morgan Stanley Capital International)
Category: Tax Issues in Investing
$100 Money invested in these types of pension funds is tax deductible, and
remains untaxed until it is withdrawn during retirement DC plans such as 401k’s
or IRAs
$200 The reason why State and Local governments pay lower interest rates on
their bond issuance than similarly rated corporations Muni bond interest is not
taxed by the Federal government
$300 For a fee, these companies provide credit enhancement to lesser-known
municipalities, reducing their interest expenses some Insurance companies
$400 The tax advantage available for many direct investments in real estate
Mortgage interest deduction
$500 The reasoning behind a 2003 law which reduced tax rates on corporate
dividends paid Double taxation is unfair
Category: Pursuing an Investment Idea
$100 Links to popular stock idea websites such as Seeking Alpha or Motley Fool
can be found on this website Mr. B’s welcome page
$200 This type of analysis focuses on predicting future earnings then determining
if the stock’s P/E is rich or cheap Fundamental analysis
$300 Analysis which focuses on stock price charts and formations which often
preceed stock rallies or selloffs Technical analysis
$400 The process of reducing risk by adding good investment ideas which do not
move together, such as stocks and gold Diversification
$500 The information companies release during “Earnings Season” Earnings!
Category: Financial Advisors
$100 Like doctors or attorneys, the area where most Financial Advisors have
offices In local communities
$200 The term for Financial Advisors who accept not just ethical but also legal
responsibility to always act in their clients’ best interests Fiduciaries
$300 Financial advisors are not any of these types of financial professionals but
often have some expertise in the area and usually have trustworthy contacts to
help clients Accountants, Tax advisors, insurance brokers, mortgage brokers
$400 The category of pension plan which requires workers to select their own
investments and retire on whatever assets are accumulated, for better or worse DC
$500 Rather than picking stocks, this is the biggest service Financial Advisors
provide their busy clients Maintain discipline in financial matters and avoid risk
Final Jeopardy Category: Real Estate
1. These pooled investments provide exposure to a diversified portfolio of
Real Estate assets and trade on an exchange like a stock. REIT