The Basics
______ markets handle the sale of new securities.
What is primary?
Evidence of stock ownership
What is a stock certificate?
Part of a firm’s profits that the firm may
distribute to stockholders as either cash or additional
shares.
What are dividends?
Issued by the FEDS -- considered to be very safe investment
What is US Government Bond?
PYPL
What is PayPal?
______ markets are financial marketplaces for stocks and bonds.
What are securities?
________ is the first public offering of a corporation's stock.
A corporate certificate indicating that an
investor has lent money to a firm (or a government).
What is a bond?
What is a Treasury Bill (T-BILL)?
M
What is Macy's?
______ markets handle the trading-of securities between investors w/the processed of the sale going to the seller.
What is secondary?
The federal agency responsible for regulating the
various stock exchanges; created in 1934 through the
Securities and Exchange Act.
The payment the bond issuer makes to the
bondholders to compensate them for the use of their
money.
What is interest?
Moody's, Standard & Poor's, Fitch
What are bond ratings?
What is American Express?
________ is an organization whose members can buy and sell (exchange) securities on behalf of companies and individual investors.
What is stock exchange?
A condensed version of economic
and financial information that a company must file with
the SEC before issuing stock; the prospectus must be
sent to prospective investors.
What is a prospectus?
The principal is the face value of the bond.
What is the principal?
Reserve account set up to ensure
that enough money will be available to repay
bondholders on the maturity date.
What is a sinking fund?
TGT
What is Target?
A telecommunications network that links
dealers across the nation so they can exchange
securities electronically.
What is NASDAQ?
Provides companies and investors with a means to trade stocks not listed on the national securities exchanges.
What is the over-the counter (OTC) market?
Owners are given preference in the payment of company dividends before commonstock dividends are distributed.
What is preferred stock?
Permit bond issuers to pay off the principal before the maturity date.
What are callable bonds?
What is Wendy's?