Stocks and Bonds

Question 1

Shares of these represent ownership in a company

Answer 1

stocks

Question 2

This is the amount of money loaned out

Answer 2

principle

Question 3

one of the advantages to mutual funds, individuals make the investment decisions for the fund owner

Answer 3

professional management

Question 4

A way to increase the safety of your portfolio, it spreads the risk out over a number of different investments

Answer 4

diversity

Question 5

These mutual funds require the payment of a sales commission up front

Answer 5

load funds

Question 6

This company, along with Standard and Poors, determines the credit worthiness of a company

Answer 6

Moodys

Question 7

A way to invest where investors pool their money and let a third party manage it

Answer 7

mutual funds

Question 8

This is paid to creditors and provides them with their profits

Answer 8

interest

Question 9

These bonds are tax exempt investments

Answer 9

government bonds

Question 10

These bonds offer the potential for high returns, but also come with high risk

Answer 10

junk bonds

Question 11

These are paid to shareholders out of corporate profits

Answer 11

dividends

Question 12

Shares of these don’t come with voting rights, but the holders of these will be paid first

Answer 12

preferred

Question 13

These occur when stocks are sold at a profit

Answer 13

capitol gains

Question 14

One of the advantages of a retirement account, it allows you to wait and pay taxes until after you are retired

Answer 14

tax deferred

Question 15

Often found with 401Ks, companies will contribute to an employees retirement account

Answer 15

matching

Question 16

Shares of these allow the shareholder to vote at shareholder meetings

Answer 16

common

Question 17

These are debt offered by corporations or government entities

Answer 17

bonds