Stocks and Bonds

Front

What is a dividend?

Back

A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or additional shares, representing a portion of the company's profits.

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What does it mean to own stock in a company?

Back

Owning stock means you own a share of the company, giving you a claim on part of the company's assets and earnings.

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What is the primary goal of an investor?

Back

The primary goal of an investor is to buy low and sell high to make a profit.

Front

What happens to a company's stock price when demand for it increases?

Back

When demand for a company's stock increases, the price of that stock typically goes up.

Front

What is a bond?

Back

A bond is a fixed income investment in which an investor loans money to a borrower (typically a corporation or government) for a defined period at a fixed interest rate.

Front

What is interest in the context of bonds?

Back

Interest is the payment made by the borrower to the bondholder, usually paid at regular intervals until the bond matures.

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What does it mean when a bond matures?

Back

When a bond matures, it means the end of its term, at which point the borrower must repay the bond's face value to the bondholder.

Front

What is the difference between stocks and bonds?

Back

Stocks represent ownership in a company, while bonds are a form of debt where the investor lends money to the issuer.

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What is market demand?

Back

Market demand refers to the desire of consumers to purchase goods or services at various prices, influencing the price of stocks.

Front

What is capital gain?

Back

Capital gain is the profit made from selling an asset, such as stocks, for more than its purchase price.