Key Terms
Shares of ownership in a company
stock
When must a mutual fund provide a Prospectus?
60 days (after Fiscal Year End)
A common characteristic of preferred stock is that the dividend rate is...
fixed
Stocks that have a history of paying high dividends
income
True or False: As other interest rates increase, the bond price should decrease.
true
Increase in the value of stock
capital gain
Number of Shares x Cost per Share
Cost of Investment
Investment strategy trading more than a year
long term
These stocks offer little dividends and reinvest their profits into the business
growth
True or False: The company success or failure has over a 50% affect on the stock price.
false
Part of a corporation’s profits paid to stockholders
dividends
Selling Price - Original Purchase Price =
Capital Gain or Capital Loss
The two ways to make money on your investment
dividends and capital gains
Stocks of well-established corporations
Blue Chip
True or False: The two types of stocks are common and preferred.
true
A method using a ratio to increase the number of outstanding shares and decrease the current share price.
stock-split
(Current “Profit” + Dividends on Stock) / (Purchase Price + Commission) =
return on investment
What is the largest ELECTRONIC stock system and market in the world?
NASDAQ
These stocks include airlines and travel resorts
cyclical
True or False: Stocks are Debt Securities and Bonds are Equity Securities
false
Benchmark that investors use to judge the performance of their investments
stock index
What is the term for how fast an investment can be turned into cash?
liquidity
Investors who want to invest the same dollar amount over a period of time
dollar cost averaging
These stocks include utilities and drug companies
defensive
As other interest rates increase, the bond price should...
decrease