Unit 6: Investments

Question 1

yield

Answer 1

rate of return in percent to investors for their security (stocks, bonds)

Question 2

security

Answer 2

financial instruments or investments that represent value in stocks and bonds

Question 3

volatility

Answer 3

price fluctuation in investment

Question 4

capital gain

Answer 4

positive returns on investment that involve selling asset for higher than what was paid for

Question 5

capital loss

Answer 5

negative returns on investment that involve selling asset for less than what was paid for

Question 6

dividends

Answer 6

share of a compaines profits issued to stockholders

Question 7

portfolio

Answer 7

all of a persons investment holdings

Question 8

initial public offering

Answer 8

first time a company sells stock on a stock market as a public company

Question 9

stock exchange

Answer 9

place or market where securities are bought and sold

Question 10

NYSE

Answer 10

worlds largest stock exchange and oldest US marketplace in which securities are traded

Question 11

NASDAQ

Answer 11

global electronic marketplace for buy/sell securities through computerization, speed, and transparency

Question 12

Ticker Symbol

Answer 12

stocks identified by one-to-four letter codes identifying a company on the stock market

Question 13

index (indicies)

Answer 13

tracked selection of stocks representing a market trend

Question 14

dow jones (DJIA)

Answer 14

tracks 30 largest public companies in the United States

Question 15

s&p 500

Answer 15

tracks 500 of the largest US traded companies

Question 16

bull market

Answer 16

when the stock market is optimistically trending upward (gaining value) over period of time

Question 17

bear market

Answer 17

when stock is pessimistically trending downward (losing value) over period of time

Question 18

prospectus

Answer 18

mutual fund investment document containing a managers intention

Question 19

real estate

Answer 19

commericial (business) or residential property including land/buildings that are privately owned

Question 20

collectibles

Answer 20

antiques, stamps, baseball cards, dolls, art, painting, sculptures as an investment

Question 21

broker

Answer 21

licensed investment people who are intermediaries (go-between) for buying/selling securities for a fee

Question 22

SEC

Answer 22

Securities Exchange Commision - government agency regulating and enforcing actions for investors founded in 1934 during the great depression and great stock market crash (1929)

Question 23

Fraud

Answer 23

Intentional deceit for purpose of gain

Question 24

pyramid scheme

Answer 24

illegal investment which new investors make up the bottom of the pyramid with their investment money going to levels above, only gains from new recruits, fake investments or growth, eventually collapsing

Question 25

ponzi scheme

Answer 25

illegal interest earning investment scheme/scam where there is no true investment, new deposits are cycled to older clients simulating returns, eventually collapsing from lack of new investors