Chapter 11 Study Guide

Front

Market where financial assets are sold.

Back

Secondary

Front

Distributing investments among different financial assets to maximize return and limit risk.

Back

Diversification

Front

Possibility of loss on an investment.

Back

Risk

Front

Provide a higher return over time than do other investments. Options: Certificates of Deposits, Junk Bonds, U.S. Treasury Bills, Stocks

Back

Stocks

Front

The profit or loss on an investment.

Back

Capital Gain

Front

Type of bonds companies sell to finance expansion.

Back

Corporate Bonds

Front

Share of the corporation's profits paid back to the shareholders.

Back

Earned Dividends Payments

Front

Contract to buy or sell stock on a specified future date at a preset price.

Back

Futures

Front

Date when the bond is due to be repaid.

Back

Maturity Date

Front

Use of income today in a way that allows for future benefits.

Back

Investment