Stocks 1
What is the term for how fast an investment can be turned into cash?
Liquidity
a popular profitability metric used to evaluate how well an investment has performed (you can calculate it)
Return on Investment
Large, Professionally managed company that pools its investors’ money and buys a large variety of securities
Mutual Funds
how often do companies hold shareholder meetings
annually
who can be a borrower (relative to bonds)?
•U.S. government
•a state
•a municipality
•a large company
What is the largest ELECTRONIC stock system and market in the world?
Nasdaq
what are the 2 ways to make money on an investment?
Capital Gains and Dividends
Who manages a mutual fund?
mutual fund manager, portfolio manager, fund manager...
who can vote at shareholder meetings
every shareholder
These Bonds do not pay interest
Zero-Coupon Bonds
The two types of stocks that a shareholder could own (a person would just own one type)
common and preferred
what is the russell 2000
makes up the smallest 2,000 stocks in the Russell 3000 Index
This Funds Goal is a Price increase and dividend payout
Income Fund
who is responsible for setting the dividend amount
board of directors
These are issued in terms of 2, 3, 5, 7, and 10 years
T-Notes
Preferred stock usually confers no voting rights to shareholders while _________ stock does
common
Stock market index of 30 prominent companies listed on stock exchanges in the United States
the dow jones industrial average
This Funds Goal is to tie to a specific market average
Index Funds
what is the first thing listed (for shareholders to vote on)? There is a For, Against, Abstain.
board of director seats
As other interest rates increase, the bond price should...
decrease
A usual characteristic of preferred stock is that dividend rate is...
fixed
what are 2 things that a stock-split does?
•Increase number of outstanding shares of a company’s stock
•Lowers selling price of the stock
When must a mutual fund provide a Prospectus
60 days after Fiscal Year End
which 4 ways can a shareholder vote?
phone, online, mail, in-person
Stocks are Debt Securities and Bonds are ________ Securities
Equity