Real estate investment trusts pool funds from a group of individuals and invests it in real estate
TRUE
The ROI is the ratio of money gained or lost on an investment in relation to the cost.
True
Passive income is not one of the advantages of owning rental property.
False
Many items purchased for a home office or for your rental property can be deducted for taxes.
True
The difference between an equity REIT and a mortgage REIT is that an equity REIT invests in mortgage loans that finance the development of properties
False
The prospectus is a legal document that offers securities or mutual fund shares for sale and explains the offer
True
In looking for houses to flip, you will want to look for areas that generally have strong employment and a growing population
True
Most IPos involve companies going through a transitory growth period, whihc makes it easy to predict future values
false
when a company declares bankruptcy, secured lenders recievetheir money first, followed by unsecured lenders (bondholders) and then preferred stockholders beffore common stockholders
true
government officials andinvestors watch the stock market for signs of how businesses are doing and for a reading on consumer confidence.
Trye
from the cast flow statement you extract criteria to evaluate a company's liquidity and financial leverage, which are indicators of stability and the possibility for future growth
false
the following information is included in a stock quote: price information;dividend; dividend yield and price-to earning ratio
true
evaluation criteria tp pull from the blalance sheet and income statement should focus on liquidity and financial leverage
true
even though the process of buying, selling, and evaluating stocks take a considerable amound of researchand time, people are alwasys better off investing in stocks over mutual funds
false
saving your money in a low-risk account grows its purchasing power
false
investing is putting money at risk
true
the higher the risk, the higher the potential returns and the less likely you will achieve the higher return
true
when allovations are made to each tier of the investment pyramid proportionally, you mitigate overall risks while continuing to grow wealth
true
a reason not to invest in a mutual fund is that you have a targeted retirement date and you would like to reduce your market risks gradually as you approach retirement
false
with a 529 college savings account,there are no taxes on the account's earnnings; anyone can contribute to the account, and in some statesponsored planes, the contribution is deductible from state taxes
trye
a traditional ira does not offer any tax advantage on the contribution, but it grows tax-free and all withdrawals are tax free
false
all 401k contributions are on a pretax basis and the earnings are tax-deferred
true
a coverdell education saving account is similar to a roth IRA in that the contributions to the accounts are after-tax and they grow free of federal income tax
true
important savings goals during the independent life stage are investing in your education and investing in your retirement
True