Chapter 6 Review

Quick and unexpected changes in value or price

A person's risk tolerance varies depending on how much uncertainty he or she is willing to handle.

An increase in the value of an investment is called

Income that results from selling an asset for more than the purchase price is a capital loss

The price at which an investment can be bought or sold at a given point in time is its ____.

A mutual fund is created by pooling the money of many people and investing it in a collection of securities.

An investment's yield is the amount of money earned on the investment, usually expressed as an annual percentage

A collection of investments a person has made is called an investment

An extended period of rising stock prices is a bear market; an extended period of falling stock prices is a bull market

Which type of investment provides an individual with voting rights and receives dividends when declared

Share in the ownership of a corporation

A ___ Occurs when the selling price of an investment is less than the purchase

Portion of a company's earnings that is paid to stockholders

Spreading risk by putting money in different types of investments is known as ___.

The ticker symbol is a series of letters that identify the company; it is also known as a trading symbol.

Short-term debt with maturities ranging from a few days to 52 weeks.

An overall rise in prices is called

The amount earned on an investment for a given period of time.

Amount of uncertainty a person is willing to handle.

Stock that pays a regular dividend at a fixed rate.

A company's initial public offering (IPO) occurs in the primary market.

A business cycle is the fluctuations between periods of economic growth and slowdown.

Financial assets issued by corporations

A stop order instructs your broker to buy or sell a stock when and if it reaches a specific price.

Degree to which an investment may deviate from its rate of return.

Company's first sale of stock to the public

Purchase or sale of shares of stock

Outline of how to develop investment growth

Purchasing a financial product or valuable item with the goal of increasing wealth over time in spite of possible loss.

What is a certificate of debt issued by a corporation or government?