Franchises
What is a franchise?
Which index measures the daily average closing prices of 30 major NYSE stocks?
Dow Jones Industrial Average.
Which type of bond costs only $25 but takes 18 years to mature?
Savings Bond
What describes a growth stock?
Pays few dividends, profits reinvested into company.
This Scottish economist wrote The Wealth of Nations in 1776, often called the “father of modern economics.”
Adam Smith
What is a percentage of profits paid to the franchiser?
Royalties
How many shares must a company have in order to be listed on the NYSE (New York Stock Exchange?)
300,000
Which type of bond matures in 26 weeks and is considered very safe?
US Treasury Bill
Where are most high-tech company stocks traded?
NASDAQ
The Dow Jones Industrial Average was first published in this year.
1896
What is the initial fee to open a McDonald's franchise?
$45,000
How many people must own some of the 300,000 shares in order to be listed on the NYSE?
1,500 people
Which type of bond is issued by corporations, matures in 10–30 years, and is rated by risk?
Corporate Bond
Which professional helps buyers and sellers trade stock?
Stockbroker
This event in 1929 marked the beginning of the Great Depression in the United States.
Black Tuesday
How much cash (liquid assets) must an investor have to acquire a McDonald’s franchise?
40% of total cost.
Stock market is steadily rising over a period of time.
Bull Market
Which factor generally increases the risk of a bond?
Longer maturity time frame.
Which type of risk refers to the chance that inflation will reduce the value of your savings over time?
Inflation risk
What institution was founded in 1792 under the Buttonwood Agreement?
New York Stock Exchange
What is the franchiser's responsibility?
Providing national advertising.
Stock market is steadily falling over a period of time.
Which bond is the riskiest but potentially highest-paying?
Junk Bonds
What is it when a company doubles the number of shares but cuts the price in half?
Stock Split
This year marked the creation of the Federal Reserve System, which became the central bank of the United States.
1913