Business Chapter 10 Test

Difference between DJIA and S&P 500?

buying a stock that has low returns, but gives a steady stream of income, is an example of what investment strategy.

A _______ tells brokers to buy or sell a specific security at the best currently available price

Specialize in helping firms raise financial capital by issuing securities in primary markets

Financial Services Modernization Act of 1999 overturned a section of what banking act?

preferred stock claims take precedence over whose?

Obtain funds by accepting checking and savings deposits and then lending those funds to borrowers.  

What makes market timing difficult

Commercial banks are the most common ____________ institution

An asset management fund that securities to individuals and uses that money to buy stocks and bonds is a

a market that transfers funds from saver to borrowers

convertible security has conversion ratio of 35 means

Disadvantage of mutual funds is

 The value of the bond at its maturity

Name of the Index of the Tokyo Stock Exchange

An order buy a stock only if its price is below a certain level, or to sell only if its price is above a certain level

A type of stock that gives the holder priority over common stockholders in terms of dividends and claims on assets

interest paid on the bond – expressed as a percentage of the par value

New securities are offered to any investors who are willing and able to purchase them

Obtain funds by accepting savings deposits used to make only mortgage loans to individuals

Owned by its depositors in cooperation to assist the members (owners)

Bank failures in the 1930's, which started the great depression, cause congress to pass _________ of 1933

Distribution of earnings to the corporation’s stockholders is what? 

Difference between dividends and bond interest

Stock that has rights to vote, dividends, capital gains and claims after priority ones.

A mass huge pools of financial capital and use them to acquire a portfolio of many different assets 

A ___________ tracks how the prices of specific sets of stocks have changed

Bob buys a stock for $800 the price goes up $400, Bob has earned a __________?

Try to stabilize the banking system by establishing Federal Reserve System congress passed what

Acts as an agent buying and selling securities on behalf of clients