Personal Finance - Chapter 7 - Investing

An investment in the ownership of a corporation.

The most typical kind of stock - stockholders may receive dividends and have voting rights.

A mutual fund allows investors to __ their investments by investing in a variety of securities.

A company that brings together money from many people and manages the pool by investing.

A ___ market exists if investors are pessimistic about the economy and the market goes down.

Which of the following is NOT one of the stock exchanges discussed in the text?

A benchmark that indicates how the overall market is performing.

A place where stocks are bought and sold.

The Dow Jones Industrial Average (an index) lists ____ of the top, blue-chip companies.

Investing in a bond means lending money to the government or a corporation.

When a corp. is profitable, it sometimes pays these profits to the individuals who own stock.

Typically, as a corporation's earnings grow, it's stock price on the open market goes up.

Normally, as the risk of an investment goes up, the possible return does down.

When investing in a bond, you get the amount of your investment back when the bond ______.