Stock & Equity
Buying a share of stock means you are buying a piece of ___ in the company.
What is Ownership?
The stated annual interest payment is known as the ___ rate.
What is Coupon?
Spreading investments across many assets reduces this.
NAV stands for what and measures the fund’s per-share value?
What is Net Asset Value?
Name one major U.S. stock exchange.
What is NYSE or NASDAQ?
Payments that companies distribute to shareholders are called what?
Waht is Dividends?
The return earned if a bond is held to maturity is called ___.
What is Yield To Maturity
A common measure of total risk representing variability of returns.
What is standard deviation?
Strategy where fund managers try to beat the market.
What is active management?
The difference between the highest bid and lowest ask.
What is a spread?
The P/E ratio compares stock price to this financial performance measure.
What is Earnings?
These agencies evaluate the credit risk of issuers (name one).
What is S&P OR Moodys OR Fitch
This measure shows a stock’s sensitivity to market movements.
What is beta?
These costs reduce investor returns and differ across funds.
What is expense ratios?
Order type executed immediately at best available price.
What is a market order?
This type of stock usually has voting rights vs. another that often has fixed dividends.
What is Common Stock VS Preferred Stock
When interest rates rise, bond prices do what?
What is falls?
CAPM formula uses the risk-free rate, market return, and this coefficient.
What is beta?
ETFs often track market indexes. This approach is called ___.
What is index tracking?
Selling a borrowed stock to buy it back lower is called ___.
What is a short sell?
This corporate action increases number of shares but lowers the price proportionally.
What is a stock split?
This measure shows bond price sensitivity to rate changes.
What is duration?
Which type of risk can be diversified away: systematic or unsystematic?
What is unsystematic?
A fee paid when buying or selling some mutual funds.
What is a load?
Borrowing from your broker to buy more securities is called ___.
What is buying on margin?