Stocks
A share in the ownership of a company, including a claim on the company's earnings and assets
What is stocks?
What is bond?
A savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest.
What is certificate of deposit?
What is an Savings account?
What is mutual funds?
NASDAQ and NYSE
What are the names of the two biggest exchanges?
You earn interest
How do you make money off of a bond?
Certificates of Deposit (CDs) require you to leave money for a set period?
T/F
True
Savings Accounts is an high risk investment?
T/F
False
There is basically one type of mutual fund.
T/F
false
A stock from a speculative company
What kind of a stock would be considered a risky investment?
corporate agency federal municipal
What are three different types of bonds?
Interest earned on both principal and previously earned interest.
What is compound interest?
This is the minimum amount of deposit required to open a personal savings account.
What is None?
Can you go to the bank and buy a share of a mutual fund?
Yes or no
no
New issues of stock are sold on the primary market first to investment bankers. Once those shares are sold, they are then traded on the secondary market.
How are the primary and secondary markets related to each other?
savings long term security you can make money off of interest they are safe
What are three benefits of investing in bonds?
A check issued against the bank's funds.
What is a cashier's check?
A check that is written with a date that will occur in the future
What is a postdated check?
Can you go to the bank and buy a share of a mutual fund?
Yes or no
yes
a commission
the name of the charge that is added on to every stock market transaction that is made for you?
state, or city government school districts federal government corporations agencies
Name four different institutions that issue bonds.
A quick formula for computing how long it will take to double money invested at a given interest rate.
What is the Rule of 72?
A type of savings account that earns the market rate of interest on the money deposited
What is a money market account?
The risk is less because there are multiple companies that are being invested in, so if one does bad then the others balance it out, and if one does good then the stocks doing bad balance that out to
Why are Mutual Funds risks low?