Chapter 11
Owners of _______ _____ help elect the board of directors
common sotck
Growth stocks can be profitable because they
reinvest earnings
Return is closely linked to __________ and ___________________.
risk; liquidity
Congress passed the _______ ________________ to make sure that corporate financial reports are accurate.
sarbanes oxley act
The financial system allows the transfer of money between ________ and ___________.
savers; borrowers
Investors experience capital gains when they
sell a stock at a higher price then what they bought it at
Investors suffer capital losses when they
sell a stock for less than what they paid or
a unit of stock in a company
share
making high-risk investments with borrowed oney
speculation
Investors buy stocks trhough ____________________.
stock brokers
____________ ___________ are markets where stocks are bought and sold.
stock exchanges
During a bear market, investors sell bcause
they expect the prices to decrease.
Fedwire
wire transfers electronic payments, security transfer services
small cap
<2B
large cap
>10 B
Financial intermediaries also provide information and give investors more _____________.
liquidity
NYSE Requirements
2,000 shareholders, 1.1 million shares, $60 million in market cap, $2.5 million in latest fiscal year
mid cap
2B-10B
The collapse of the stock market of 1929 was one of the causes of the ___________ ___________
Great Depression
What does ROI stand for?
Return On Investment
SEC
Securities & Exchange Commision
SIPC
Securities Investor Protection Corporation
In a _________ _________, most stock prices are falling
bear market
In a _____ _____ most stock prices are rising.
bull market
Fedcash
distributes currency
Income stocks pay
dividends at regular times during the year
Stock are riskier because
dividends depend on profit
Investors in stock can profit from ___________ or ______________.
dividends; capital gains
Financial intermediaries include banks, savings and loan associations, credit unions, lief insurance companies, _________ ________________, and _____________ ________________.
finance companies; pension funds
An investment is something bought for ________ financial benefit.
future
Investment promotes economic __________.
growth
Financial intermediaries allow investors to cut down risk through diversification and by buying ___________________ _____________.
mutual funds
Blue chip stocks are traded on the
new york stock exchange
contract to trade stock at a specific price and time in the future
options
Owners of ________ ____________ do not vote but receive dividends first
preferred stock
PE
price-to-earnings
A stock's price usually goes up if the company makes a _____________.
profit
