Financial Risk - Cash and Shares

Money paid regularly at a particular rate for the use of money lent

• loan

• credit

• interest

• debt

A financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans

• Stock exchanges

• Mutual funding

• Banks

• Credit Officers

Units of equity ownership interest in a company

• Shares

• cashier check

• money order

Payments made to shareholders of a company's shares are called?

• coupon

• interest

• dividend

Relationship between risk and return in investing can be stated as:

• higher the risk indicates lower potential return

• higher risk indicates higher potential return

• lower risk indicates higher potential return

A dividend is a distribution of a portion of a company's profits

• True
• False

Profit from the sale of an investment is known as...

• collateral gains

• Cash

• Sales margin

• Capital gains

A holder or owner of shares in a company or corporation.

• stock market
• shareholder
• portfolio
• industry

Mark bought 100 shares of intel stock.  Each share sold for $35.50.  If no fees were involved, Mark paid $3,550 for the shares.

• True
• False

Sandy has invested in a share on the ASX. She is assured of receiving a dividend.

• True

• False