7.2 Intro to the Stock Market Review

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

• Pension

• Coupon

• Dividend

• Security

An index that tracks the stocks of a set group of 30 large, well-established, financially sound companies that are leaders in their industries

• S&P 500

• NASDAQ

• Dow Jones Industrial Average

• Stock Index

The second largest stock exchange in the world behind the NYSE.

• NASDAQ

• Pension

• NYSE

• Pension

The annual interest payment on a bond, usually expressed as a percentage of its face value

• Pension

• Coupon

• Nasdaq

• Security

A market where shares in corporations are bought and sold through an organized system.

• Stock Exchange

• Bond Rating

• Mid Cap Stock

• Small Cap Stock

The first time a company becomes publicly traded by issuing stock that may be bought and sold on the market

• Individual Retirement Account (IRA)

• Dollar Cost Averaging

• Initial Public Offering (IPO)

• New York Stock Exchange (NYSE)

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company → Stock

• True

• False

An employer contribution made to their employees' 401(k) plan based on individual employee's contributions → 401(K) Match

• True

• False

A bond, often having tax advantages for individual investors, issued by a state or local government which typically uses the loan to pay for public works to benefit its citizens → Municipal Bond

• True

• False

An investing tool for individuals to earmark funds specifically for their retirement → Initial Public Offering (IPO)

• True

• False