Mr. Phillips Wise Review 3

What is the stock market?

• A type of farmers market where people buy and sell food.
• A place where parts of businesses are bought and sold.
• A special type of grocery store that sells stocks.
• A type of bank that gives out loans to new businesses.

When the stock market does well for a long time, it is called a _______ market.

• bear
• bull
• fish
• horse

What is an IPO?

• when a company first sells stock to the public
• a new Apple product
• when the government creates shares on the stock exchange
• when the company's shareholders have a meeting

What is a corporate bond?

• a bond issues by a local government but sold by a corporation
• a bond issued by a corporation as a way to borrow money
• a high-risk investment in the proceeds of a corporation
• another name for corporate stock

What investment option's price changes every minute?

• Stocks
• Bonds
• House
• Certificate of Deposit

What investment option has the highest potential return?

• Stocks
• Bonds
• Certificate of Deposit
• Simple Savings Account

What investment option has the highest potential risk?

• stocks
• bonds
• house
• certificate of deposit

What is the Securities & Exchange Commission?

• an independent agency that advises the government about financial markets
• a government agency that sells treasury bonds
• a government agency that regulates financial markets & investment companies
• a privately owned investment corporation that sells different investments

To finance the building of a new police station, a local government is most likely to issue a

• junk bond
• treasury bond
• municipal bond
• money market bond

All of the following are basic components of bonds EXCEPT

• maturity
• liquidity
• par value
• coupon rate