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Stocks, Bonds, and Mutual Funds Flashcards | StudBud
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Stocks, Bonds, and Mutual Funds
Stocks, Bonds, and Mutual Funds
26 terms
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StudBud Administration
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#Stock Market #Finance #Stocks #Bonds #Mutual Funds
Flashcards
26 cards
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Questions
26
Answers
1
How does the corporations get money from the stock?
Celebrity endorsements
Charge the consumer a higher price
The corporation's net worth increases
Investment bankers pay for the stock
2
A mutual fund without a sales charge is called
a load fund
a 12b-1 fund
a no-load fund
an aggressive growth fund
3
What is a stock?
Part of a corporation's profit
Money you receive from a corporation
Part ownership of a corporation
Above average returns on an investment
4
When the shares of stock are first issued, to whom are they sold?
To investment bankers
To the stock exchangers
To the public
To the 1 %ers
5
A zero-coupon bond pays interest
at the time of purchase
at the maturity date
never
periodically
6
What is liquidity?
The wetness of the money in your pocket
The ability to turn your money into cash or spendable funds
The flow of assets
The ability to "wash" your money so its untraceable
7
One way people can earn money from stocks is by
selling the stock for a higher price than price they paid
buying stock from an investment banker
selling the stock for a lower price as the price they paid
selling the stock for the same price as the price they paid
8
Which is the largest stock market in terms of stocks traded?
NASDAQ
AMEX
NYSE
9
An order to buy or sell a stock at the market means to buy or sell the stock
as long as the price does not exceed a certain limit
in the over-the-counter market
at an organized financial market, such as the NYSE
at whatever price is currently set by the market
10
Which stock market has no physical location and trades are done via computer networks?
AMEX
NASDAQ
NYSE
11
What is a bond's coupon?
The rate of interest to be paid by the bond issuer
The value of a bond at its maturity date
The purchase price of a bond
The value of a bond at its issue date
12
What is a mutual fund?
A group of investors used to buy equity in various companies
An angel investor who pools money to invest in a start-up
A pool of money used to buy a variety of stocks and bonds
A single investor who buy a variety of stocks and bonds
13
Which stock market is home to the Dow Jones and S&P 500?
NYSE
AMEX
NASDAQ
14
A bond's interest rate is called its
coupon rate
par value
principal
face value
15
What is the relationship between the expected rate of return and the investment risk?
Lower the risk, the greater the expected rate of return
Greater the risk, the lower the expected rate of return
Greater the risk, the greater the expected rate of return
There is no relation ship between risk and rate of return
16
What is an advantage of buying a mutual fund?
All mutual funds are the same
Allow investors to spread risk among several stocks and bond
Many mutual funds do not charge management fees
Load funds do not charge a sales commission
17
What is a stock dividend?
The price for which the stock is sold to investment bankers
Part of a company's profit that is paid to owners
A capital gain
The price for which the stock is sold in stock markets
18
Why do people buy stocks?
They expect to earn money
They are guaranteed interest payments each year
The government encourages them to buy stock
There is no chance of loss
19
People buy stocks because?
there is no chance of a loss
the government encourages them to buy stock
they are guaranteed interest payments each year
they expect to earn a profit
20
What is a bond?
A certificate of ownership with a percentage of the earnings
A certificate representing a loan to a corporation or gov't
A group of stocks sold together for a set price
A certificate of deposit
21
What are stock markets?
New York City discount stores
Upscale boutiques selling and buying stocks
Stores in the mall specializing in stocks
Places or ways in which people buy and sell stocks
22
Which stock market was founded shortly after the Civil War?
NYSE
AMEX
NASDAQ
23
Which stock market is considered "home of the tech stock"?
AMEX
NYSE
NASDAQ
24
What does a full-service broker do that a discount broker does not do?
Makes transactions in the over-the-counter market
Makes transactions in organized financial markets
Charges a commission
Gives investment advice
25
A bond's face value may also be called the
par value
coupon
final payment
maturity
26
Which is the oldest stock market?
AMEX
NYSE
NASDAQ
