2. Stocks and Bonds ☆ Flashcards

1
Q

Shares of ownership in a corporation

A

Stocks

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2
Q

Also known as “Shares or Equity”

A

Stocks

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3
Q

Stockholders, also known as?

A

Stockbuyers

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4
Q

Stockholders share what?

A

Capital

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5
Q

Comprised of more than half of the totality of the company’s stock; they HAVE THE RIGHT TO VOTE.

A

Common Stock

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6
Q

They have NO VOTING RIGHT; but they are guaranteed a FIXED DIVIDEND.

A

Preferred Stock

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7
Q

The marketplace for stock.

A

Stock exchange

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8
Q

A certificate or proof which proves that a company/corporation borrowed money from a certain group of individuals/investors for a definite period of time.

A

Bonds

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9
Q

Bonds have?

A

Interest

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10
Q

Amount stated in the bond, to be used by the issuer in calculating the interest.

A

Face Value

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11
Q

Amount of the interest

A

Dividend

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12
Q

Interest rate the bond issuer uses to calculate the interst payment.

A

Dividend rate

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13
Q

Dividend rate, also called?

A

Yield

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14
Q

Interval dates

A

Coupon dates

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15
Q

When the bond will mature

A

Maturity date

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16
Q

Amount to be paid to the bondholder on the coupon date

A

Maturity Value

17
Q

Tool used by market investors & commerical managers in describing the stock market.

A

Market index

18
Q

Market Index is the?

A

Weighted Average Value

19
Q

Used to reflect the hypothetical portfolio of the stock market

A

Stock Index

20
Q

Compares the treasury bills/corporate bonds

A

Bond Index

21
Q

A belief that in an efficient market, all participant investors are aware of allavailable, relevant market information.

A

Theory of Efficient Markets

22
Q

Risks caused by changes in market prices of equities/bonds.

A

Price Risk

23
Q

Borrower’s failure to pay.

A

Credit Risk

24
Q

Inability to sell/convert assets into cash on time.

A

Liquidity Risk

25
Q

Risk due to political, economic, or social events in a country.

A

Country Risk