STOCKS AND BONDS

It is the money that is earned in trade or business after paying the costs of producing and selling goods and services.

• STOCK

• PROFIT

• BOND

• INVESTMENT

What is the other name for a bond's interest rate? 

• PAR VALUE

• FACE VALUE

• COUPON RATE

• MARKET VALUE

It is used to describe the ownership certificates of any company and also known as shares and equity.

• BOND

• STOCK

• COMMISSION

• STOCK HOLDER

A person or an entity that gives money or allocates capital with the expectation of receiving financial returns.

• ENTEPRENEUR

• STOCK HOLDER

• POLITICIAN

• INVESTOR

An activity in which money is put at risk for the purpose of making a profit.

• INVEST

• SELL

• BUY

• COLLECT

What is a bond’s coupon?

• the purchase price of a bond

• the interest earned to be paid by the bond issuer

• the value of a bond at its issue date

• the value of a bond at its maturity date

What is a bond?

• a certificate of ownership in a corporation, with the right to a share of the earnings

• a payment from an investor to a corporation for the rights to future profits

• a group of stocks sold together for a set price

• a certificate representing a loan from an investor to a corporation or government entity

Why would someone buy a bond instead of a stock?

• It is a less risky investment.

• To have ownership in a company

• It can yield a higher return on investment.

• To receive dividend payments

One way people can earn money from stocks is by

• Selling the stock for a lower price than the price they paid for the stock.

• Buying stock from an investment banker.

• Selling the stock for the same price as they paid for the stock

• Selling the stock for a higher price than the price they paid for the stock.

If the interest rate on bonds increases, which of the following is the most likely result?

• The supply of money decreases.

• Bond prices increase.

• The transaction costs associated with holding money will increase.

• People will be willing to hold less wealth in the form of money.