Personal Finance Chapter 9 Vocabulary

Question 1

A company that issues stock only to a small group of people (<100)

Answer 1

Private Corporation

Question 2

Stock that pays higher than average dividends compared to other stocks

Answer 2

Income Stock

Question 3

The assigned dollar value that is printed on a preferred stock certificate

Answer 3

Par Value

Question 4

Stock that is considered a save, conservative investment.

Answer 4

Blue-Chip Stock

Question 5

Stock that has a market value that tends to reflect the state of the economy.

Answer 5

Cyclical Stock

Question 6

Stocks of new companies, unsteady companies, typically for less than $1 a share.

Answer 6

Penny Stock

Question 7

Occurs when investors are optimistic about the economy and buy stocks.

Answer 7

Bull Market

Question 8

Occurs when investors are pessimistic about the economy and sell stocks

Answer 8

Bear Market

Question 9

Annual dividend divided by the current market value

Answer 9

Current Yield

Question 10

A corporation’s net earnings divided by the number of outstanding shares.

Answer 10

Earning Per Share