Chapter 19 Investing - part of final Flashcards
What is an Initial Public Offering (IPO)?
The first public offering of a corporation’s stock.
What is the role of Investment Bankers?
Specialists who assist in the issue and sale of new securities.
What is a Bond?
A corporate certificate indicating that a person has lent money to a firm.
What are Stocks?
Shares of ownership in a company.
Define Common Stock.
The most basic form of ownership in a firm; it confers voting rights and the right to share in the firm’s profits through dividends.
Define Preferred Stock.
Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders.
What is the New York Stock Exchange?
A major stock exchange where stocks are bought and sold.
What is NASDAQ?
A nationwide electronic system that communicates over-the-counter trades to brokers.
What is a Mutual Fund?
An organization that buys stocks and bonds and then sells shares in those securities to the public.
Name the five criteria to consider when selecting investment options.
- Investment risk
- Yield
- Duration
- Liquidity
- Tax consequences
True or False: Common stockholders have priority over preferred stockholders in asset claims.
False.
Fill in the blank: A _______ is a corporate certificate indicating that a person has lent money to a firm.
Bond
