Stocks and Bonds
A note that promises to pay back an individual at a later date with interest if money is borrowed. Only governments and corporations can do it. What is it?
bond
Conditions are looking optimistic for an investor in the future
Bull market
A great way to easily diversify your investing in many stocks and bonds is to invest in
etfs or mutual funds
Find the current ratio for a business with 10 million in current assets and 5 million in current liabilities
2:1
Something found on the balance sheet that is a thing a business has that contains value.
asset
Name 3 market sectors
materials, consumer discretionry, defense, utilities, technology, etc
Market capitalization for a company is ________ times _________
price, shares outstanding
A fund that contains stocks that mostly pay dividends is called __________
an income fund
What is the ideal value for the quick ratio/acid-test ratio?
1
When total revenue is subtracted by cogs, you will get _________
gross profit
Some stocks will pay you a little bit of cash every 6 months called a ____________
dividend
The name of a person that can help you buy and sell stocks is called a _____________
stockbroker
This type of fund tracks the S and P or Nasdaq, __________
Index fund
The current ratio is always _____________ the quick ratio. ( greater than, less than, the same as)
greater than
On the bottom line of the income statement is the ______________
net profit
When a city or local area issues a bond, it is called a.........
municipal bond
Using the rule of 72, if you have an investment that will give you an 8% return annually, about how long will it take to double your money?
9 years
A fund that has a mix of stocks and bonds is called a ________________
Balanced fund
The operating margin can be calculated using information found on the __________
income statement
What is the fundamental accounting equation?
Assets = liabilities + owner's equity
What is the best possible rating a bond could receive?
AAA
Why do companies issue stock?
They want to raise money.
The average fly speed of an unladen African swallow is________
Scientifically unrecorded
A high gross margin but a very low operating margin indicates _________
lots of spending on operating costs like salary, marketing, research, ppe.
What are the 3 categories of activities on the cash flow statement?
operating, investing, and financing