Personal Finance Week 5 & 6 Quiz

The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI).

• Rate Of Return
• Bond
• Bond Rating
• Coupon

A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date

• Bond
• Rate Of Return
• Bond Rating
• Coupon

A measurement of the likelihood that a bondholder will be paid back

• Bond Rating
• Bond
• Rate Of Return
• Coupon

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

• Coupon
• Bond
• Bond Rating
• Rate Of Return

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk

• Diversification
• Dividend
• Initial Public Offering (IPO)
• Market Capitalization

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

• Dividend
• Diversification
• Initial Public Offering (IPO)
• Market Capitalization

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

• Initial Public Offering (IPO)
• Dividend
• Diversification
• Market Capitalization

Market value of a company's outstanding shares calculated by multiplying the current share price by number of shares outstanding

• Market Capitalization
• Dividend
• Initial Public Offering (IPO)
• Diversification

A collection of stocks and/or bonds combined into one fund which will be traded as a unit, typically chosen and actively managed by an "expert" in exchange for a fee from each investor

• Mutual Fund
• Nasdaq
• New York Stock Exchange (NYSE)
• Stock

The second largest stock exchange in the world behind the NYSE

• Nasdaq
• Mutual Fund
• New York Stock Exchange (NYSE)
• Stock