Wall Street Quiz #3

When you buy on margin, you borrow money to lend.

When you short sell, you borrow stock from a broker to sell with the hope that its price increases

When the majority of a company’s shares of stock (controlling interest) are bought.

Interest calculated at regular intervals solely on principal.

Spreading investment funds through a variety of savings and investments to reduce risk

These invest in stocks or bonds that closely follow an index.

investment instrument developed & managed by a company that pool members’ money to invest in a variety of stocks & bonds

The Value of Shorts is updated daily and is always subtracted from the Cash Balance.

When you buy on margin, you borrow money to invest.

the amount of money your team has earned or lost since the beginning of your trading session.

The fee charged for using another's money or credit.

When a company decreases the number of outstanding share thereby increasing the price per share

A Spin-Off occurs when an existing publicly owned company sells a part of its assets or distributes new shares

Your annual income on an investment

During the trading day, opening buying power will be impacted by any sales or purchases of securities

When a company divides each of the outstanding shares of a company thereby lowering the price per share

When two or more companies combine into one company while all the parties involved mutually agree to the terms of the

length of time it takes (at a given interest rate) for an investment to double.

Total Equity is the sum of the Cash Balance plus the Total Value of ___________

A retirement savings plan funded by employee contributions and (often) matching contributions from the employer.

A special form of deposit offered by banks that generally pays compound interest for a fixed period of time

A statistical measure of change in an economy or a securities market.

When a public company initiates an action that will bring a change to its stock.

A _____ commission fee is charged on every buy, sell, short sell, and short cover

An IOU that a company or government sells when it borrows money.