Tonya sold 50 shares of stock for $32.50 a share. What was her dollar return on the stock if she paid $24.88 a share for it when she bought it?
$381
100
What is a bond's interest rate called?
Coupon Rate
100
Large, professionally managed group of investments
Mutual Fund
100
If you invest $2000 in an account that earns 6.5% annually. How many years will it take for your money to double?
Just over 11 years
100
The ticker symbol is what for a stock?
A few letters that represent a particular stock
200
Lacy bought 115 of stock for $45.75 a share. She collected 2 dividend payments of $2 per share each year and later sold the stock for $51.38 a share. What was her dollar return?
$1107.45
200
People who own stock in a company are called..
Shareholders
200
Part of a company's profits paid to shareholders
Dividends
200
You want to double your money in 9 years. What interest rate must you earn?
8%
200
Why is it important to diversify. Explain
If you distribute money among different asset classes, if one does poorly, others may be doing better. So you don't lose it all at once.
300
Lisa bought stock for $23 a share and later sold it for $27. What was her rate of return?
17.391%
300
What is the expiration date of a bond called?
Maturity date
300
Provides advice and executes trades for people
Full-service brokerage
300
How long will it take for your $3000 to double if it earns 7%?
Just over 10 years
300
Give two ways stocks and bonds are different
Stocks are riskier
Bonds are safer
Stocks usually have higher rates of return in the long run
Bonds have lower rates of return typically
400
You bought stock for $45 a share and sold it later for $47.50. You also received dividends of $2 a share while you owned the stock. What was your rate of return on the stock?
10%
400
When a company begins trading on the stock market, the company is said to be what?
Publicly traded
400
Where transactions take place after the IPO
Secondary Market
400
How long will it take to double $2899 at 8%?
9 years
400
James purchased three $1000 bonds at a coupon rate of 8% and a maturity date of 5 years. How much interest will James earn over 5 years?
$1200
500
You bought stock for $28.75 per share and later sold it for $31.50 per share. You collected $2.75 dividends. What was your rate of return?
19.13%
500
Unit of ownership in a company
Stock
500
Promissory note to repay money in the future
Bond
500
How long will it take to double $10,000 at 3%?
24 years
500
Explain why the older investors typically don't invest in the stock market. Why is it more popular among younger investors?
Older people need safer investments. Not as much time to "wait it out".