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Duplicate of Stocks and Bonds Flashcards | StudBud
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Duplicate of Stocks and Bonds
Duplicate of Stocks and Bonds
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1
Home Equity means
Don't know
Home Equity is the amount of money you borrowed from the bank
Home equity equals Market Value of house less any mortgage
Home equity equals your Purchase price less your loan amount
2
You use the ______ when you purchase a bond from a person who currently owns the bond.
Stock Exchange
secondary market
private market
Bond Exchange
3
A bond has an coupon rate of 3% & new bonds are being issued at 5%, this bond would sell at
Coupon Rate
Face Value
Premium
Discount
4
Simply defined, a bond is a
IOU
Interest
Dividend
Stock
5
A collection of stocks managed by a fund manager.
Mutual Fund
Bond Fund
Big Board
Bear Market
6
Which is NOT a risk for bond holders
Interest Rate Risk
Default Risk
Dividend Risk
Call back Risk
7
The price of a bond is important because it determines the
Rate of Return (or yield)
Coupon Payment
Interest
Date of Maturation
8
If a person wants low risk investing, he or she would likely invest in
Stocks
Bonds
9
Which bond would have the lowest interest rate
C
BB
AAA
AA
10
The price of a stock is determined by
NYSE
Corporate Boards
Supply and Demand
IPO
11
Which is not a benefit of buying a home vs. renting
sense of stability
You are responsible for repairs and maintenance on the house
You will own your home once the mortgage is paid off
You build equity
12
Which Federal Debt would have the shortest term to maturity?
Treasury bonds
Corporate bonds
Treasury Notes
Treasury Bills
13
State or local governments issue
Treasury Bills
Municipal Bonds
Treasury Notes
Corporate Bonds
14
The highest bond rating from Standard and Poor's
A+
BB
D
AAA
15
When a company initially offers to sell stock on the open market.
Trade
Divest
IPO
Split
16
A term that is synonomous with "stock."
loan
dividend
debt of a company
equity in a company
17
Rate of Return or ROI is calculated as:
Selling price divided by purchase price
Capital gain divided by selling price
Total gain/loss on an investment divided by the original investment.
Company Earnings divided by number of shares outstanding
18
As a general rule, you do not want to spend more than what percent of your gross pay on housing costs
20%
40%
30%
25%
19
The % of the face value of a bond paid annually is known as the
Interest
Yeild
Coupon
Par
20
A group of stocks in which to invest handled by a professional manager is a(n)
Index Fund
Stock
Bond
Mutual Fund
21
A claim on the assets of a corporation that gives the purchaser a share in the corporation.
Interest
Bond
Stock
Index
22
The main difference between Treasury bills, notes, and bonds is their
Interest
Market Value
Time to Maturity
Yield
23
Electronic stock market: trades made through computer and telecommunication networks.
NASDAQ
NYSE
DJIA
AMEX
24
A bond in the D category is
Possibly default
At low risk
A good investment
In default (not be able to pay back the bonds)
25
Which of the following is NOT a Stock Index?
S & P 500
NYSE
Dow Jones Industrial
NASDAQ Composite
26
Another name for Coupon Rate is
default rate
premium rate
interest rate
discount rate
27
Which is NOT one of the three components of a bond?
Coupon Rate
discount rate
face value
maturity date
28
Collection of 30 stocks that mirror what is happening in the market as a whole.
NASDQ Composite
DJIA
Russell 2000
S & P 500