Unit 3: Chapter 8: Stocks

Question 1

Define the Term: Stock

Answer 1

Shares, or a portion of a corporation

Question 2

Define the Term: Common Stock

Answer 2

Type of stock that represents true ownership of the company

Question 3

Define the Term: Dividends

Answer 3

Payments that stockholders get for owning a portion of the business that are paid only after all other business expenses have been paid

Question 4

Define the Term: Preferred stock

Answer 4

With preferred stock, shareholders are paid before common stocks, or dividends, however it does not represent true ownership in the company

Question 5

Where can you buy and sell stock?

Answer 5

A stock exchange

Question 6

Define the Term: Index fund

Answer 6

A group of stocks that represent a selection of companies using differing variables

Question 7

Define the Term: Mutual Fund

Answer 7

Privately managed stock portfolios

Question 8

Define the Term: Creditor

Answer 8

Someone to whom debt is owed