Ch 11 econ

the NASDAQ & the DOW are pretty much the same thing

high risk usually leads to little reward

savings bonds are issued by corporations to cover expenses

bond issued by a company

actual cost of buying a bond

created to index the largest companies trading

you purchase stock in

person who takes your stock order and earns a commission on the sale

government agency that regulates the financial markets

when lots of people pool their money to get a higher interest rate

S & P is an index put together to measure the stock market

Stock exchanges are all the same

giving $$ to an intermediary in order to get a return

when a company goes bankrupt, its stockholders

Stock splits are generally a good thing

If the NYSE is like Home Depot _____ is like True Value

when investing in bonds, it is usually best to wait until __ to cash in

buying stock is different from other investments because

a claim on the property of the borrower

stocks are bought in something called

a bank or insurance company

if you loan money to a bank for a period of time at a fixed rate you probably bought

to buy stock you may have to contact one of these

2 ways to make $$ on stocks: dividends & ___

in terms of investing

largest stock exchange in USA

money being invested in banks, then being loaned out to those who need it

junk bonds are a relatively safe investment

financial intermediaries are not necessary in a free market

what investors hope comes back to them

stockbrokers make a commission from buying & selling stocks

listing of 500 smaller companies so see how market is doing

the NYSE & NASDAQ are

stock is actually purchased at stock exchanges

end of a set time when a bond is ready to cash in

organization of banks and investors in the economy

when the value of your stock is cut in half & number of shares doubles

interest rates are generally lower on lower risk investments

mutual funds are a great way to get a higher return on a small investment

value a bond is given

bond issued by a city

liquidity is how fast you can turn your investment into cash

savings bonds are a relatively safe investment

dividends are paid quarterly on certain stocks

stocks are issued in something called points