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Misc.
Saving and Investing
Bonds and other Financial assets
The Stock Market
Vocabulary
100
claims of ownership in a corporation
What is an equity
100
Investment report to potential investors
What is a prospectus
100
Interest rate the bond issuer will pay to the bondholder
What is a coupon rate
100
Income, Growth, common, and preferred are all types of what?
What is stock
100
a bomd issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools.
What is a municipal bond
200
the strategy of spreading out investments to reduce risk
What is diversification
200
Banks, Savings and Loan Associations, Financial Companies, and Mutual funds
What are Financial Intermediaries
200
regulates financial markets and investment companies.
What is the Security and Exchange Commision
200
markets for buying and selling stock
What is a stock exchange
200
a lower rated, potentially higher paying bond.
What is a junk bond
300
the ease with which people can convert asset into cash
What is liquidity
300
the act of redirecting resources from being consumed today so that they may create benefits in the future.
What is an investment
300
Market for reselling financial assets
What is secondary market
300
This exchange handles stock and bond transactions for only the largest and most established companies in the country.
What is the New York Stock Exchange
300
amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity.
What is par value
400
Capital Market, Money Market, Primary Market, and Secondary Market
What are Financial Asset Markets
400
investment that is insured by the Federal Government
What is a Certificate of Deposit
400
issues treasury bonds, as well as Treasury bills and notes (T-bills and T-notes)
What is the United States Treasury Department
400
a steady rise in the stock market over a period of time
What is a bull market
400
the practice of making high-risk investments with borrowed money in hopes of getting a big return.
What is speculation
500
The division of a simple share of one stock into more than one share
What is a stock split?
500
Borrowers may not pay back the money they have borrowed, or they may be late in making payments.
What is a credit risk
500
Government savings that helped finance World War II
What is a war bond
500
these people try to predict minute by minute price changes based on computer programs that tell the trader when to buy or sell.
What is a Daytrader
500
the American market for OTC securities
What is Nasdaq