11/22 Review for Final Exam Part 1

Front

What is a stockbroker?

Back

A person who is licensed to buy and sell stock in the market.

Front

When you own part of a company, this means you own ________ in that company.

Back

Stock.

Front

What is a capital gain?

Back

Another way for an investor to earn profit.

Front

Is a bond generally considered less risky than a stock?

Back

True.

Front

Can people who invest in stocks lose their money?

Back

False.

Front

What is a dividend?

Back

An amount of money paid to the shareholders.

Front

What does it mean when a stock splits?

Back

Means that each single share of stock will split into more than one share.

Front

What is an asset?

Back

Anything of value or a resource owned by a company.

Front

What is the primary purpose of investing in stocks?

Back

To earn a return on investment through capital gains and dividends.

Front

What is market risk?

Back

The risk of losses in investments due to market fluctuations.