Methods of Investing- Personal Finance ch 14

Bond

A ___________ is the promissory note, or a promise to repay a certain amount of money at a future date.

Brokerage

A ____________ firm executes investments trades for investors.

Coupon rate, Coupon Payments

A bond's interest, or _________, represents the interest due on the bond. The regular interest payments are also called __________.

A. Stock

A fractional ownership in a company is called a _________-. A. stock B. CD C. bond D. dividend

Institutional Investor

A large pension fund is an example of an ________.

Security

A stock and/or bond issued by governments and businesses is commonly referred to as a _________.

Publicly Traded

A stock is ________ when the company is trading on a stock exchange such as the NYSE or NASDAQ.

D. Executive

All of the following are types of bonds except ______. A. municipal B. treasury C. corporate D. executive

C. Commission

Brokerage firms typically charge a fee known as a ______ for carrying out transactions. A. sale price B. initial public offering C. commission D. security

Dividends, Shareholders

Companies sometimes pay cash distributions knows as _________ to companies' owners who are knows as ________.

Investment

Emilio's _______ portfolio has stocks, bonds, mutual funds and real estate.

Federal Agency Bonds

FHA or Ginnie Mae may issue bonds known as ___________.

Stock

Krisztina has purchased ________ in a company, which represents a piece of ownership.

A. Stocks

Liquid investments include all of the following except __________. A. stocks B. certificates of deposit C. savings accounts D. checking accounts

Full-Service Brokerage

Merrill Lynch is an example of a _________ firm because its brokers advise and execute trades.

B. High Risk

Mutual funds are attractive for all of the following reasons except _____________. A. professional management B. high risk C. diversification benefits D. low initial investments

Individual Investor

Myles like to evaluate companies and pick his own stocks, He is considered an ________.

Primary Market

The ________ is where the initial public offering occurs.

NYSE

The _________ is an example of a secondary market that uses an auction system to trade stocks.

C. Earn Low Returns

The biggest problem with liquid investments is that they _________. A. generate high returns B. create significant tax liabilities C. earn low returns D. are difficult to redeem

Treasury Bonds

The debt of the United States government is financed with ________.

Maturity

The expiration date of a bond is called the _________.

SEC (Securities and Exchange Commission)

The government agency that regulates and monitors the stock market is called the ____________.

Face Value

The maturity value of a bond is shown on the front of the bond, known as ________.

D. The NYSE

The most famous stock exchange where stocks are traded using an auction system is ________. A. E*TRADE B. Cybor C. IPO D. the NYSE

NASDAQ

The secondary market includes the _______.

Municipal Bonds

To finance large public projects such as water or sewer systems, state or local government may issue _________.

A. National Debt

Treasury bonds are issued by the United States government to finance our ________. A. national debt B. taxes C. banking system D. Social Security system

A. An IPO

When a company "goes public," the first sale of stock is called _________. A. an IPO B. a CD C. the NYSE D. the NASDAQ

IPO (initial public offering)

When a company "goes public," this first sale of stock is called a(n) ______.

Secondary Market

When stock sales are reported in the newspapers or in the financial news, these transactions occurred in the _______.

Discount Brokerage, Commissions

When you trade on E*TRADE or similar companies, you are working with a ________, who offers lower _______ but a reduced level of service.

D. Buying a bond mutual fund

Which of the following is not a method of investing in real estate? A. owning your own home B. buying rental property C. owning timberland D. buying a bond mutual fund

Mutual Funds, Diversification

__________ will typically own a wide range of investments. Multiple investments in a variety of different types of investments are called ________.

Corporate Bonds, Junk Bonds

___________ are issued by large firms and have all degrees of risk. Those with the highest risk are called ___________.