Stocks 1
Stocks 2
Bonds 1
Bonds 2
Risks
100
-long and stable record of earnings and dividends -unsurpassed in quality -relatively high priced -issued by large firms such as Walmart, Nike, IBM, etc.
What is blue-chip stock
100
-gamble on new info that stock will rise -bought in hope stock price per share will increse
What is speculative stock
100
-bond issued and backed up by full faith and credit of U.S govt.
What is treasury bond
100
principal payments are adjusted to provide protection against inflation -measured by CPI
What is treasury inflation-indexed bond (TIPS)
100
concerns amount of debt used to finance firm and then possibility that the firm wont have a cash flow to meet obligations on time
What is financial risk
200
-earnings and market price have increased over time -increased at a rate well above average
What is growth stock
200

-appeal is the dividends paid out -offers dividend pmts that are expected to increase over time

What is income stock

200
-part of US bond market -political subdivision of the US govt.
What is agency bond
200
-secured by a claim on real assets such as manufacturing plant
What is mortgage bond
200
inability to liquidate investment convieniently at a reasonable price
What is liquidity risk (or marketability)
300
-stock with total market value less than $2 billion
What is small-cap stock
300

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-stock with total market value falling between $2 billion and $10 billion

What is a mid-cap stock?

300
-issued by state or local govts. -interest income usually exempt from federal taxes
What is municipal bond
300
issued by a corporation
What is corporate bond
300
something unexpected or major may occur that makes a substantial difference or change in value of investment
What is event risk
400
-total market value is above $10 billion
What is large-cap stock
400
-technology section of market
What is tech stock
400
-municipal bond serviced from income generated by a specific project
What is revenue bond
400

*DAILY DOUBLE* Only the team that initially selects a Daily Double may respond to that clue. The team may wager any or all of their current points on that question, or if they have less than 500 points, they may wager up to 500 points.

-municipal bond backed by the full faith and credit of the issuing municipalty

What is- general obligation bond

400
changing market interest rates; mainly affects fixed income securities
What is interest rate risk
500
-price movements parallel the various stages of the business cycle -when economy is in expansionary stage, the prices of this type of stock increase -when economy is in contradictory stage, prices decline for this stock
What is cyclical stock
500
-expected to remain stable during periods of contraction -price movements are usually contrary to business cycle -not huge gains but can go up or remain stable
What is defensive stock
500
-pays no annual interest -sells at deep discount to its par value
What is zero coupon bond
500
-known as 'high yield bonds' -highly speculative securities that have received low ratings from Moody's or Standard & Poor's
What is junk bond
500
possible changes in price levels that can affect investment returns
What is purchasing power risk
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