Financial Markets

WHICH OF THE FOLLOWING TERM , IS NOT RELATED TO STOCK EXCHANGE

• BULL
• BEAR
• LION
• STAG

The return you get for purchasing stocks comes in the form of:

• coupon
• face value
• dividends

The return you get for purchasing bonds comes in the form of:

• face value
• dividends
• coupons

The reason a company may issue shares, would be to 

• raise capital
• increase number of shareholders
• increase number of bondholders
• decrease number of shareholders

Buying stock in a company means that you become a partial __________ of that business.

• Owner
• Lender
• Customer
• Stockbroker

Define Financial Intermediaries

• the market for existing government securities
• An organisation that lends money to households and firms but has taken it from other other households or firms
• The lending of money to another party, involves temporary loan
• Development of new financial products and methods.

What is defined as the degree to which an asset can be converted into cash?

• Credit
• Debt
• Liquidity
• Swap rate

income not used for consumption

• Investment

• Savings

• diversification

• return

Collects funds from savers and invests the funds in loans and other financial assets

• investment objective

• secondary market

• primary market

• financial intermediary

The interest rate paid on a bond

• Coupon rate

• Par Value

• bond premium

• capital gain