Stock Market 1
A distribution of a portion of a company's profits given to stockholders are called this.
What are dividends?
This is the largest and most well-known stock market in the world.
What is the New York Stock Exchange? (NYSE)
This refers to the availability of your money.
What is liquidity?
This type of policy involves the manipulation of interest rates and the money supply.
What is monetary policy?
Anything that has financial value and is owed.
What are liabilities?
This type of stock is cheaper to purchase. Owners usually get paid last but get voting rights.
What is common stock?
This must be acquired before a company's stock can be sold to the public.
What is an initial public offering? (IPO)
This type of money would need to be backed by a commodity such as gold in order to have any value.
What is representative money?
This government agency insures bank deposits up to $250,000.
What is the FDIC or Federal Deposit Insurance Corporation?
Describe one function of money.
What is (1) Medium of Exchange - money only has value if it is accepted as a form of payment for goods and services .....(2) Unit of Account - helps societies measure the relative values of goods and services... (3) Store of Value - money can be saved and used to purchase goods and services at a later date
This type of investment is managed aggressively by a professional.
What is a hedge fund?
What is the Standard and Poor's 500? (S & P 500)
These are the three major branches of the Fed.
What are the (1) board of governors, (2) 12 regional banks, and (3) the Federal Open Market Committee? (FOMC)
Anything that has financial value and is owned.
What is an asset?
This type of money has intrinsic value that is independent of its value as money.
What is commodity money?
These two components are multiplied together in order to find the market capitalization of a company.
What are stock price and outstanding shares?
This government agency must approve the process by which companies begin selling stock to the public.
What is the Securities and Exchange Commission? (SEC)
A loan to a company or government that pays investors a fixed rate of return over a specific timeframe.
What is a bond?
This type of money only has value because a government declares that it does.
What is fiat money?
The system in which only a portion of deposits are backed by actual cash on hand - theoretically “creates” money.
What is Fractional Reserve Banking?
Probably the most well known stock index in the world, it takes the average of 30 top companies.
What is the Dow Jones Industrial Average?
This global electronic market has no physical location and includes many tech related stocks.
What is the NASDAQ?
The process of the Fed buying and selling government bonds is known as this.
What are open market operations?
This is the interest rate that banks charge each other.
What is the Federal Funds Rate?
This is the interest rate that the Fed charges banks for loaned money.
What is the Discount Rate?