Trading at physical exchanges like the New York Stock Exchange and the American Stock Exchange takes place here.
What is the broker's trading post?
100
Another word for the principal amount of a bond that is repaid at the end of the term.
What is the par value or face value?
100
The type of bond whose interest is free from federal taxes?
What is a municipal bond?
100
he chance that the bond issuer will not be able to make timely payments.
What is credit quality or default risk?
200
The index that best reflects the ten sectors of the economy.
What is the S & P?
200
This price is higher than the bid price in order for the broker to earn a profit.
What is the ask price?
200
The interest rate on a bond is known as this.
What is the coupon rate.
200
Bonds backed only by the operations of the business, but no assets or other entity.
What are debentures or unsecured bonds.
200
The category of bonds which carries substantial risk of non-payment of interest and / or principal?
What are junk bonds?
300
These individuals who use their own stock inventory and capital to buy and sell the stocks they represent.
Who are market makers?
300
The number of stocks followed in the DOW.
What is 30?
300
The agreement that spells out the terms of the bond.
What is the indenture
300
The extra payment required to be paid if a bond is paid off early.
What is the call premium or call penalty?
300
Name two of the bond rating agencies.
What are Moody's, Standard & Poor, Fitch, Dominion, and A.. Best?
400
The largest electronic stock market without a physical trading floor.
What is NASDAQ?
400
These stocks are included in the NASDAQ composite.
What is all the stocks listed on the NASDAQ?
400
The term that means the chance that future interest payments will have to be reinvested at a lower interest rate.
What is re-investment risk?
400
Bonds which carry the full backing of the U.S. Government are known as this.
What are U.S. Treasury Bonds?
400
The lowest rating a bond can carry and still be considered investment grade.
What is BBB?
500
The number of stocks originally in the DOW.
What is 11?
500
An order which will only be executed if the order's price conditions are met.
What is a limit order.
500
The term that means that during periods when interest rates change substantially, bondholders experience distinct gains and losses in their bond investments.
What is interest rate risk?
500
This type of bond can be traded in for stock.
What is a convertible bond?
500
The term for junk bonds that were issued at investment grade.