Financial Markets Study Guide

What is the money an investor receives above and beyond the money initially invested called?

• Savings
• Liquidity
• Return
• Investment

Redirecting resources from being consumed today to create future benefits

• FDIC
• Mortgage
• Investment
• Bond

In general, the higher the potential return on an investment, the riskier the investment.

• True
• False

"Stockbroker"

• A person who manages the buying and selling of stocks
• A market where stocks can be bought and sold
• The range of investments held by a person or organization
• A report that describes a company's financial history

"Stock Exchange"

• A person who manages the buying and selling of stocks
• A market where stocks can be bought and sold
• The range of investments held by a person or organization
• A report that describes a company's financial history

"Return"

• Money received after making an investment
• Percentage of an original investment that an investor collects
• The rate of return on a bond
• The interest rate a bond seller pays a bond buyer

Corporate bonds are issued by...

• Private Companies
• Local Governments
• The Federal Government
• Banks

High-risk bonds issued by new companies are often called...

• Junk Bonds
• Savings Bonds
• Municipal Bonds
• James Bonds

What happens to a company’s stock price when the company makes a profit?

• The stock price stays the same.

• The stock price goes in the same direction as the stock market.

• The stock price goes up.

• The stock price goes down.

You should invest in something you don't understand

• False
• True