CH 11 Financial Markets

Electronic marketplace for securities that are not traded on an organized exchange

Stocks that represent ownership shares in corporations

Period during which stock market prices move down for several months or years in a row

Someone who inherits the ownership of a financial asset if the purchaser dies.

Institutions that bring together the funds that savers provide and lend them to others.

Period during which stock market prices move up for several months or years in a row

Regular payment intended to provide income security to someone who has worked a certainnumber of years or a certain age.

Bonds issued by state and local governments.

Company that sells stock in itself to individual investors

Place where buyers and sellers meet to trade stocks

Degree to which the outcome is uncertain but a probable outcome can be estimated.

United States government obligations with maturities of 2 to 10 years.

Network of savers, investors, and financial institutions that work together to transfer savings to investors.

The dollars that become available when people abstain from consumption.

Claims on the property and the income of the borrower.

Long-term, tax-sheltered time deposits that can be set up as part of an individual retirement plan.

Exceptionally risky bonds

Stated interest on a corporate, municipal, or government bond.