Money Matters
Stocks
Business Ownership
Bonds and Financing
Potpourri
100
The interest rate that a bank charges its best loan customers, usually large corporations with excellent credit ratings
What is the prime interest rate?
100
Investors who purchase shares of stock in a corporation
What are shareholders?
100
A business that is owned and operated by a single individual
What is a sole proprietorship?
100
Unsecured bonds that are backed only by the company's promise to pay
What are debentures?
100
Informing the press or a government official about unethical practices in an organization
What is whistleblowing?
200
The percentage of deposits that banks must keep on hand, as prescribed by the Federal Reserve
What is the reserve requirement?
200
Earnings of a corporation that are distributed to its shareholders, usually on a quarterly basis
What are dividends?
200
A company that licenses elements of its business system to others in exchange for royalties
What is a franchisor?
200
Bonds that are backed by company-owned property that pass to bondholders if the issuer does not repay the borrowed amount
What are secured bonds?
200
An organization that is part of the Small Business Association that offers free advice and counseling to entrepreneurs on developing business plans, securing financing, managing growth, etc.
What is the Service Corps of Retired Executives (SCORE)?
300
The interest rate that member banks pay when they borrow money from the Federal Reserve
What is the discount rate?
300
An order that tells a stockbroker to buy or sell at the best price that can be negotiated at the moment
What is a market order?
300
A legal form of business with two or more owners
What is a partnership?
300
Money reserved each year to guarantee that a bond will be paid off at maturity
What is a sinking fund?
300
An agreement between a company and an employee (usually an executive), specifying that the employee will receive certain benefits/salary if his or her employment is terminated
What is a golden parachute?
400
The function of the Federal Reserve that involves buying and selling Treasury bonds, bills and notes to increase or decrease the monetary supply
What is open market operations?
400
An order that tells a broker the highest price you are willing to pay when buying a stock, or the lowest price at which you are willing to sell
What is a limit order?
400
A business arrangement in which one party obtains the right to sell products and use various elements of a business system of another
What is a franchise?
400
Financing by selling ownership shares in the company
What is equity financing?
400
Raising equity capital by selling shares of stock to the public for the first time; sometimes called "going public"
What is an initial public offering?
500
The federal agency responsible for protecting money in customer accounts if a bank fails
What is the Federal Deposit Insurance Corporation (FDIC)?
500
An order that tells a broker to sell if the price of a stock drops to a certain level
What is a stop order?
500
A business owner who pays for the rights to sell the products and use the business systems of a franchisor
What is a franchisee?
500
Obtaining funds for operating a business by borrowing money (through loans, bonds, etc.)
What is debt financing?
500
Buying stock in units of 100 shares
What is a round lot?
M
e
n
u