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Econ Ch 11 Flashcards | StudBud

Explore/Econ Ch 11

Spreding out investments to reduce risk

What is a prospectus?

Econ Ch 11

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Questions 10

Answers

1
What is a prospectus?
A pool of money from various investors
A report for an individuals investments
A collection of financial assets
A report for possible investors
2
Spreding out investments to reduce risk
Portfolio
Diversification
Financial asset
Return
3
How are savers and borrows linked?
Through capital loss
Through financial intermediaries
Through corporate bonds
Through stockbrokers
4
Difference between the selling and purchase price that results in financial gain for the seller
Brokerage firm
Capital gains
Yield
Yield
5
Which of these is the most risky for investors?
Treasury bonds
Corporate bonds
Municipal bonds
Savings bonds
6
Money investors get for the use of their money
Financial system
Investment
Diversification
Return
7
Period in which the stock market falls steadily
Speculation
Bull market
Bear market
Free fall
8
A day-trader tries to make a profit by
Taking advantage of minute-by-minute changes in stock prices
Reducing risky investments
Investing only in blue chip stocks
Speculating with borrowed money
9
Time at which payment is due to a bondholder
Coupon rate
par value
Maturity
Savings bond
10
How can borrowing money from banks help businesses grow?
They invest the money
They but mutual funds
They borrow more savings
They make higher profits