STOCKS AND BONDS

Question 1

Stocks are also know as ______

Answer 1

Shares

Question 2

Units of stocks are called ______

Answer 2

Shares

Question 3

____________ issue stocks to raise more funds and expand the business

Answer 3

Corporations

Question 4

owners of the issuing company, any person, company, or institution that owns shares in a company’s stock or equity

Answer 4

Shareholder’s

Question 5

Gives shareholders voting power

Answer 5

Owning stocks

Question 6

2 sources of stock income/revenu

Answer 6

Dividends and capital appreciation

Question 7

debt instruments commonly utilized by corporations and governments to raise capital.

Answer 7

Bonds

Question 8

Is the issuer of the bonds the debtor or creditor?

Answer 8

debtor

Question 9

Is the amount that the bond will be worth at MATURITY

Answer 9

Face value

Question 10

price at which the bond issuer originally sells the bonds

Answer 10

issue price

Question 11

face value is the _________ value of the bond, representing the amount that will be repaid to the bondholder at maturity.

Answer 11

Nominal

Question 12

This is the interest rate that the bond issuer will pay

Answer 12

Coupon rate

Question 13

Dates when bond issuer will make the payment

Answer 13

Coupon date

Question 14

The standard payment in coupon date

Answer 14

semi-annual

Question 15

This is the date on which the bond will reach its full face value and cease to accrue interest.

Answer 15

Maturity date

Question 16

These bonds are issued by corporations to raise capital for various purposes such as expansion, acquisitions, or debt refinancing.

Answer 16

Corporate bonds

Question 17

Municipalities and states issue these bonds to finance public projects such as infrastructure development, schools, or utilities.

Answer 17

Municipal bonds

Question 18

Years of maturity for US treasury notes

Answer 18

1 - 10 years

Question 19

Years of maturity for PH treasury bonds

Answer 19

2 - 25 years

Question 20

are considered low-risk investments and are often used as benchmarks for other fixed-income securities.

Answer 20

Government bonds

Question 21

Give atleast 3 government affiliated organizations

Answer 21

BPI
BIR
DepFi
DOLE
DENR
etc..

Question 22

Do not pay coupon payments, instead is issued at a discount price

Answer 22

zero coupon bonds (z-bonds)

Question 23

Embedded options that allow bondholders to convert their debts into stocks.

Answer 23

Convertible bonds

Question 24

can be called back by issuer when it is rising in value

Answer 24

Callable bonds

Question 25

Callable bonds are risky for who?

Answer 25

Risky for bond buyer

Question 26

Puttable bonds are risky for who?

Answer 26

Risky for bond issuer

Question 27

bond holder can sell/put the bond back to the company before it matures

Answer 27

Puttable bonds

Question 28

Enumerate the 4 varieties of bonds

Answer 28

Zero-Coupon Bonds (z-bonds) Convertible Bonds Callable Bonds Puttable Bonds

Question 29

Enumerate the 4 Categories of bonds

Answer 29

Corporate bonds Municipal bonds Government bonds Agency bonds

Question 30

Enumerate the 4 Characteristics of bonds

Answer 30

Face value Coupon rate Coupon date Maturity date