Stocks
What are the units of stocks called?
(For example, I bought 100 "_______" of apple stock)
Shares
What does NYSE stand for?
New York Stock Exchange
Name 3 common types of bonds
DAILY DOUBLE: order them from least to most risky
Government Bonds
Corporation Bonds
Municipal Bonds
You purchase a $1000 bond @ 8% coupon rate. Then, bonds start selling at 6-7% coupon rates. What happens to the value of your bond?
Increases in Value
The name of the fee paid to mutual fund managers
Commission
The name of someone who buys and sells stocks for a living (usually for other people)
Stockbroker
AAPL
Which part of the government issues T-bonds, TIPS, and T-Notes
The Treasury
The amount of money from a $1,000 bond at 5% coupon rate pays once a year.
$50 per year
List 2 benefits of investing in a mutual fund
1. Diversification
2. Professional Management
What is it called when the price of a stock changes rapidly?
Volatile/Volatility
What is another name for the National Association of Securities Dealers Automated Quotations?
NASDAQ
What is another name given to the interest rate on a bond
Coupon Rate
What is the coupon rate for a $1000 bond that pays $65 per year?
6.5%
Bonds, Mutual Funds, Stocks
These stocks sell for less than $1
Penny Stocks
What does IPO stand for and what does it mean?
"Initial Public Offering" The price of a stock when it first hits the public market
Between stock holders and bond holders, who gets payed first if company goes under.
The amount earned from a $5,000 bond with a 6% coupon rate per year
$300
What is a TDF?
Target Date Fund
What are the (animal) names given to markets that:
1. Are doing well
2. Are not doing well
1. Bull Market
2. Bear Market
What does the S&P 500 stand for?
Standard and Poor's Top 500 Companies
Explain the difference between corporate bonds and stocks
Stocks represent ownership in the company, corporate bonds are loaned out money with interest
What is the coupon rate of a $1,000 bond that has a $12 payment 5 times per year?
7%
What is the biggest difference between an index fund and a mutual fund?
an index fund tries to perfectly match a government or sector
a mutual fund tries to outperform the sector or government