What is a stock dividend?

Part of a company's profit that is paid to owners

One way people can earn money from stocks is by

selling the stock for a higher price than price they paid

A certificate representing a loan to a corporation or gov't

What is the relationship between the expected rate of return and the investment risk?

Greater the risk, the greater the expected rate of return

What is an advantage of buying a mutual fund?

Allow investors to spread risk among several stocks and bond

How does the corporations get money from the stock?

Investment bankers pay for the stock

What is a bond's coupon?

The rate of interest to be paid by the bond issuer

An order to buy or sell a stock at the market means to buy or sell the stock

at whatever price is currently set by the market

Part ownership of a corporation

What is a mutual fund?

A pool of money used to buy a variety of stocks and bonds

What are stock markets?

Places or ways in which people buy and sell stocks

The ability to turn your money into cash or spendable funds

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Stocks, Bonds, and Mutual Funds

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#Stock Market #Finance #Stocks #Bonds #Mutual Funds

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Questions 26

Answers

1
A mutual fund without a sales charge is called
a 12b-1 fund
an aggressive growth fund
a load fund
a no-load fund
2
What is a stock dividend?
The price for which the stock is sold to investment bankers
The price for which the stock is sold in stock markets
Part of a company's profit that is paid to owners
A capital gain
3
One way people can earn money from stocks is by
selling the stock for a higher price than price they paid
buying stock from an investment banker
selling the stock for a lower price as the price they paid
selling the stock for the same price as the price they paid
4
What is a bond?
A group of stocks sold together for a set price
A certificate of deposit
A certificate of ownership with a percentage of the earnings
A certificate representing a loan to a corporation or gov't
5
What is the relationship between the expected rate of return and the investment risk?
Lower the risk, the greater the expected rate of return
There is no relation ship between risk and rate of return
Greater the risk, the lower the expected rate of return
Greater the risk, the greater the expected rate of return
6
When the shares of stock are first issued, to whom are they sold?
To the 1 %ers
To investment bankers
To the stock exchangers
To the public
7
A bond's face value may also be called the
coupon
maturity
final payment
par value
8
What is an advantage of buying a mutual fund?
Allow investors to spread risk among several stocks and bond
All mutual funds are the same
Load funds do not charge a sales commission
Many mutual funds do not charge management fees
9
Which is the largest stock market in terms of stocks traded?
NASDAQ
AMEX
NYSE
10
How does the corporations get money from the stock?
The corporation's net worth increases
Celebrity endorsements
Investment bankers pay for the stock
Charge the consumer a higher price
11
A bond's interest rate is called its
par value
face value
coupon rate
principal
12
What is a bond's coupon?
The value of a bond at its issue date
The value of a bond at its maturity date
The rate of interest to be paid by the bond issuer
The purchase price of a bond
13
Which stock market is home to the Dow Jones and S&P 500?
AMEX
NASDAQ
NYSE
14
Which stock market is considered "home of the tech stock"?
NASDAQ
AMEX
NYSE
15
An order to buy or sell a stock at the market means to buy or sell the stock
at an organized financial market, such as the NYSE
at whatever price is currently set by the market
in the over-the-counter market
as long as the price does not exceed a certain limit
16
What is a stock?
Above average returns on an investment
Money you receive from a corporation
Part of a corporation's profit
Part ownership of a corporation
17
A zero-coupon bond pays interest
at the maturity date
at the time of purchase
never
periodically
18
People buy stocks because?
the government encourages them to buy stock
they are guaranteed interest payments each year
there is no chance of a loss
they expect to earn a profit
19
What is a mutual fund?
A pool of money used to buy a variety of stocks and bonds
An angel investor who pools money to invest in a start-up
A single investor who buy a variety of stocks and bonds
A group of investors used to buy equity in various companies
20
What are stock markets?
New York City discount stores
Places or ways in which people buy and sell stocks
Stores in the mall specializing in stocks
Upscale boutiques selling and buying stocks
21
Which stock market was founded shortly after the Civil War?
AMEX
NASDAQ
NYSE
22
Which stock market has no physical location and trades are done via computer networks?
AMEX
NYSE
NASDAQ
23
Why do people buy stocks?
There is no chance of loss
They expect to earn money
The government encourages them to buy stock
They are guaranteed interest payments each year
24
What is liquidity?
The ability to "wash" your money so its untraceable
The flow of assets
The wetness of the money in your pocket
The ability to turn your money into cash or spendable funds
25
Which is the oldest stock market?
NASDAQ
AMEX
NYSE
26
What does a full-service broker do that a discount broker does not do?
Makes transactions in the over-the-counter market
Gives investment advice
Makes transactions in organized financial markets
Charges a commission

Stocks, Bonds, and Mutual Funds Flashcards | StudBud