Stocks and Bonds

Front

What are individuals who are part owners of a company called?

Back

Shareholders

Front

What document verifies the number of shares of stocks owned by an individual?

Back

Stock Certificates

Front

What is the periodic interest payment that a bondholder receives called?

Back

Coupon

Front

What is an interest-bearing security that promises to pay a stated amount on the maturity date and regular interest payments?

Back

Bonds

Front

What is the place where stocks can be bought and sold?

Back

Stock Market

Front

What is the primary purpose of stocks?

Back

To raise capital for a company by selling ownership shares.

Front

What is the difference between stocks and bonds?

Back

Stocks represent ownership in a company, while bonds are loans made to a company or government.

Front

What is a dividend?

Back

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Front

What does it mean when a bond is issued at a premium?

Back

It means the bond is sold for more than its face value.

Front

What is market capitalization?

Back

The total market value of a company's outstanding shares of stock.