An Introduction to Stocks and Bonds

Question 1

Bought and sold in centralized exchanges such as the NASDAQ or the NYSE.

Accepted Answer

Stocks

Question 2

Prices are generally determined by the supply and demand for the investment instrument.

Accepted Answer

Both

Question 3

Typically have greater long-term rate-of-return than savings accounts.

Accepted Answer

Both

Question 4

Can be bought and sold in the secondary market.

Accepted Answer

Both

Question 5

Represents ownership in a corporation.

Accepted Answer

Stocks

Question 6

Some pay dividends (a share of the profits).

Accepted Answer

Stocks

Question 7

Risk free.

Accepted Answer

Neither

Question 8

Rated on a scale from AAA (best) to D (worst).

Accepted Answer

Bonds

Question 9

Have a maturity date.

Accepted Answer

Bonds

Question 10

"Blue Chip" or "Penny" options.

Accepted Answer

Stocks

Question 11

Investor receives payments based on the face value and interest rate of the instrument.

Accepted Answer

Bonds

Question 12

Buying and selling is regulated by the Securities and Exchange Commission (SEC).

Accepted Answer

Both

Question 13

Investment value is dependent on the value of the company.

Accepted Answer

Stocks

Question 14

Part of a diversified investment portfolio.

Accepted Answer

Both

Question 15

Lending money to the issuing institution.

Accepted Answer

Bonds

Questions 15