Wise Review #3

Front

What is an example of securities?

Back

stocks, mutual funds, bonds, all of the above

Front

What do equities represent?

Back

ownership held by shareholders in a corporation

Front

How do you calculate capital gain or loss?

Back

the difference in the amount you sell a stock for and what you paid for it

Front

What happens in a primary market?

Back

securities are created and sold to the public for the first time

Front

What happens in a secondary market?

Back

investors trade among themselves

Front

What is a stock?

Back

a share of ownership in a company

Front

How do investors make profit off of stocks? Options: the company pays you a dividend of their profits, you trade it for another stock, you do not make money unless you sell it, you give it back to your broker

Back

the company pays you a dividend of their profits

Front

What is a stock held in a well-respected, financially secure company?

Back

blue-chip stock

Front

What does it mean when it is a bull market?

Back

stock prices are rising

Front

What does it mean when it is a bear market?

Back

stock prices are falling