Marketplace
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Attainable Assets
Bond, What Bond
Making Money
100
market where money is loaned for more than one year
What is a capital market?
100
popular benchmark of stock performance that uses the price changes of 500 representative stocks as an indicator of overall market performance
What is the S & P 500?
100
long-term, tax-sheltered time deposits people set up to help provide income during retirement
What is an Individual Retirement Account (IRA)?
100
contracts to repay borrowed money at regular intervals
What is a bond?
100
holding a large number of stocks so that increases in some will offset unexpected declines in others
What is portfolio diversification?
200
mean market in which prices of equities decline for several months or years
What is bear market?
200
company that sells stock in itself to individual investors and then invests the money in stocks and bonds of other corporations
What is a mutual fund?
200
when the government does not tax interest paid on an investment
What is tax-exempt?
200
these bonds are exceptionally risky
What is a junk bond?
200
tax-deferred investment and savings plan that acts as a personal pension fund for many employees
What is a 401 (k) plan?
300
market where existing financial assets can be resold to new owners
What is a secondary market?
300
selling stock to the public for the first time
What is the initial public offering?
300
a nonbank financial institution set up to provide financial protection for survivors of the insured
What is a life insurance company?
300
stated interest on a corporate, municipal, or government bond
What is the coupon rate?
300
firm that makes loans to consumers and buys installment contracts from merchants who sell goods on credit
What is a finance company?
400
most stocks in the United States are traded on this market/exchange
What is the over-the-counter market?
400
the right to SELL something at a specific future price
What is a put option?
400
issued by the U.S. government; has a maturity of 10 to 30 years
What is a treasury bond?
400
principal of a bond or total amount borrowed
What is par value?
400
governments and businesses borrow funds from these two groups (both directly and indirectly)
What are savers (households) and financial intermediaries?
500
argument that stocks are always priced about right
What is the Efficient Market Hypothesis (EMH)?
500
2 of the 3 general requirements for a firm to become a member of the NYSE
What is a membership fee, minimum profit requirement, minimum size requirement?
500
the 4 basic investment considerations
What is consistency, simplicity, risk/return relationship, and investment objectives?
500
3 factors that determine a bond's current yield
What is supply and demand, current interest rates, and the risk of the investment?
500
3 factors that determine the value of stock
What is number of outstanding shares, company's profitability, expectations for company's growth?