Wall Street Quiz #3

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

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

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

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

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

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

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

Interest calculated at regular intervals solely on principal.

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

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

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

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

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

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

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

Your annual income on an investment

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

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

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

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

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

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

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