Bonds
Random Finnace
Stocks
stocks/bonds
100
Current price = bond value
What is par value
100
Performance of a stock index relates to the performance of all the components, not any individual component True or False
What is true
100
2 ways ownership builds wealth
What is stock appreciation and dividends
100
Price of an individual stock can fall while the index as a whole appreciates True or False
What is true
200
Four major parts of a bond
What is face value, coupon payment, maturity, issuer
200

Current price > Face value

What is Premium 

200
Share of profits distributed by company to their shareholders as cash
What is dividend payments
200
Calculated by multiplying the number of outstanding shares of stock by the share price of the stock.
What is market capitalization
300
Bonds represent loans to these three places
What are corporations, governments, municipalities
300
Referred to as value of companies stock
What is market capitalization
300
This is made up of a group of stocks
What is stock index
300
The 3 factors that affect bond prices
What is time until maturity, credit rating, coupon rate
400
Bonds can sell at these 3 descriptions
What is par, discount, premium
400
Current price < face value
What is discount
400

If a company goes bankrupt and stock price goes to zero, this happens to it's shareholders.

Investors lose all money invested in the company. 

400
This is the calculation of dividend yield
What is Annual Dividend per Share / Price Per Share
500
Bond payments build wealth by this
What is receiving coupon payments
500
This market is where investors purchase bonds directly from original issuer for the face value
What is primary market
500
Institution that facilitates the market for stocks (brings together buyers and sellers)
What is stock exchange
500
Current Yield calculation
What is coupon payment / current price
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