A zero coupon bond:Is sold at a discount to face value.Is worthless.Matures immediately.Always has a call feature.
Credit cards:Are a cost effective way of financing investment purchases.Have interest payments that are not tax deductible.Typically have lower interest rates than home equity loans.Often have 3 month grace periods on new purchases.
Mortgage payments:Can be completely deducted from income for tax purposes.Vary from month to month on a fixed rate loan.Represent high principal payments early in the term of the loan.Are typically tax deductible to the extent that they represent payment of interest.
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
The total stock market (S&P 500) return during the 1990s was:Predicted by most Wall Street analysts at the beginning of the decade.Lower than the historical averageThe highest of any decade in the 20th century.Approximately the same as the total return during the 1970s.
Gold may be a good investment if:Inflation is expected to increase.You like the color.World peace comes to pass.Foreign governments sell their gold reserves.
Junk bonds:Are bonds issued by junk yards.Are sometimes called "high yield bonds."Are less risky than government bonds.Are not actually bonds.
A prudent investor:Does not have to consider the tax effect of long-term gains.Evaluates his/her investments on an after-tax basis.Studiously avoids income-shifting among funds.Knows that a drop in the dividend payout signals a stronger firm.