Unlike equity investments, debt investments don't...
Something similar to "...give ownership in a company."
True or false: Treasury bills are a form of municipal bond.
False
ETFs reduce single-stock risk exposure because...
Something similar to "...they hold many different stocks, spreading risk across multiple companies."
True or false: You can buy bonds on the Investopedia simulator.
False
Credit risk refers to...
Something similar to "...the possibility that a borrower will fail to repay debt."
The higher the credibility, the _____ the interest rates.
Something similar to "lower"
Unlike preferred stocks, common stocks offer...
Something similar to "...voting rights."
Something similar to "stocks; ETFs; options."
The par value refers to...
Something similar to "...the total amount the holder will receive at maturity."
Something similar to "Government; they are literally backed by the government, the most trustworthy entity"
Unlike common stocks, preferred stocks offer ____ in the case of ____.
Something similar to "priority dividend payments; liquidation or bankruptcy."
True or false: You are able to view the performance of options you've purchased.
True
When interest rates rise, ____ bond prices ____ because ____.
Something similar to "old; fall; existing bonds pay less than newer bonds, so they are less attractive."
There are two types of corporate bonds: investment-grade and _____. Of the two, _____ are more risky because _____.
Something similar to "junk; junk bonds; they have lower credit ratings and therefore higher default probability"
Capital gains are taxed on ____ when _____.
Something similar to "profits from selling investments for more than their purchase price; you sell."
Because the market's trading hours are relative to Eastern Time, the market closes at ___ PT.
Something similar to "1:00 pm."
Unlike unsecured debt investments, secured debt investments offer ____, which means _____.
Something similar to "collateral; the lender can claim specific assets if the borrower defaults."
Certificates of Deposit are of ____ risk because they are ____.
Something similar to "low; FDIC (federally) insured and have a fixed interest rate"
The PE ratio calculates _____, which is used to determine _____.
Something similar to "price relative to earnings; stock over/undervaluation."
When you buy a stock using a market order, you...
Something similar to "...you purchase it immediately at the current market price."