Bonds
Stock Market
Vocabulary
Misc.
Markets/Options
100
The principal amount of a bond that is loaned by the investor to the company or government entity.
What is the par value?
100
The largest stock market where most stocks are traded today.
What is the over-the counter market?
100
The absence of spending that frees resources for use in other activities or investments.
What is saving?
100
A retirement investment that is pre-tax and contributions can be matched by the employer.
What is a 401-K retirement plan?
100
A market in which money is loaned for more than one year.
What is the capital market?
200
The interest rate earned on a bond.
What is the coupon rate?
200
A market where stock prices are moving down for several months in a row.
What is a bear market?
200
Institution that channels savings to investors.
What is a financial intermediary?
200
The market value of a mutual fund share.
What is the net asset value?
200
A market where only the original issuer can sell or repurchase a financial asset.
What is the primary market?
300
The bond rating of a bond in default.
What is D bond rating?
300
A stock market index based on 30 representative stocks.
What is the Dow Jones Industrial Average?
300
Finance companies, life insurance companies, & pension funds, for example.
What is a non-bank financial institution?
300
Bonds issued by the federal government.
What is a savings bond?
300
Market where buying and selling takes place in the present.
What is a spot market?
400
A bond with a rating of BBB or higher
What is an Investment grade bond?
400
The agency responsible for regulating the securities markets.
What is the Securities and Exchange Commission (SEC)?
400
Situation in which the outcome is not certain.
What is risk?
400
The benefit of owning a municipal bond.
What is safe and tax exempt?
400
An agreement to buy or sell at a specific date in the future for a set price.
What is futures contract?
500
A bond with a rating of BB or lower.
What is junk bond?
500
The idea that equities are usually traded at prices that reflect their actual worth.
What is the Efficient Market Hypothesis?
500
Someone who inherits a financial asset if the purchaser dies.
What is a beneficiary?
500
Annual interest rate (coupon rate) divided by purchase price.
What is the current yield?
500
A futures contract that gives a buyer the right to cancel the contract.
What is an option?
M
e
n
u