Stocks & Bonds

Question 1

A is a share in the ownership of a company, representing a claim on the company’s assets and earnings

Answer 1

stock

Question 2

A is a person who holds a company’s stock, and this means that person is one of the many owners or shareholders of the company.

Answer 2

stockholder

Question 3

A stockholder’s return on his/her investment is called dividend

Question 4

The __________________ regulates the stock market in the country.

Answer 4

Philippine Stock Exchange (PSE)

Question 5

A stock certificate is a proof of ownership, which represents a stock. Stocks are bought and sold in a stock exchange, also called the

Answer 5

stock market.

Question 6

The original price set by a company for stocks when they are first issued is called __ _____

Answer 6

par value

Question 7

is bought to grant credit to a company

Answer 7

bond

Question 8

of the bond on the front of the bond;

Answer 8

the face value or denomination

Question 9

on which the loan will be repaid

Answer 9

redemption date or maturity date

Question 10

which the bond pays on its face value at regular time intervals until the maturity date

Answer 10

bond rate or coupon rate

Question 11

which is the amount promised to be paid on the redemption date

Answer 11

redemption value

Question 12

gives the owner the right to share in the profits and to vote on company policy.

Answer 12

Common stock

Question 13

pays the owner a fixed percentage of the stock’s par value each year

Answer 13

Preferred stock

Question 14

is the remaining amount of profit of the company after stock dividends are subtracted.

Answer 14

Retained earnings

Question 15

are indicators of the value of a certain stock used to quantify and compare relative values of stocks and bonds.

Answer 15

Market indices

Question 16

Ratio of annual dividend to price per share

Answer 16

Stock Yields (percent yield)

Question 17

Ratio of annual dividend to current price

Answer 17

Current Yield

Question 18

Ratio of net income to number of outstanding shares

Answer 18

Earnings per Share (EPS)

Question 19

Ratio of price per share to annual earnings per share

Answer 19

Price-Earnings Ratio (PE ratio)

Question 20

Ratio of total gains to total cost

Answer 20

Rate of Return on a Stock Investment

Question 21

Market Indices for Bonds

Answer 21

Bond Yields (percent yield)

Current Yield

Approximate Yield to Maturity

Question 22

is the amount of annual interest

Answer 22

I

Question 23

is the par value of bond

Answer 23

P

Question 24

the cost or current price

Answer 24

C

Question 25

is the number of years to maturity

Answer 25

n

Question 26

Ratio of annual dividend to price per share

Answer 26

Bond Yields (percent yield)

Question 27

Ratio of annual dividend to current price

Answer 27

Current Yield

Question 28

The _____________ holds that stocks are already accurately priced and they reflect all available information about companies

Answer 28

Theory of Efficient Markets

Question 29

The ____ _____ assumes that current stock prices fully reflect all historical information, including past returns.

Answer 29

weak form

Question 30

The ______ ___ assumes that stock prices fully reflect all historical information and all current publicly available information

Answer 30

semi-strong form

Question 31

The ________ states that prices reflect not just historical and current publicly available information, but insider information, too

Answer 31

strong-form