Chapter 19

What is the " Market price " of a stock ?

• The price each share of a company's stock can be bought/sold.

• Measures market prices for large groups of stocks.

• Receives dived

• You become one of the company's owners

What is a Stockbroker ?

• The price each share of a company's stock can be bought/sold.

• measures market prices for large group of stocks.

• A licensed specialist in the buying and selling of stock & bonds.

• Government body that overseas.

Bond Price

• date you will be repaid

• what you pay for the bond.

• interest rate

Face Value

• date you will be repaid

• what you pay for the bond

• How much you will be repaid

Provides Information about securities you may want to buy

• Full service brokers

• Discount broker

• Stockbroker

Business organization that accommodates the buying & selling of stocks and bonds

• Face Value

• Coupon

• Stock Exchanges

• Bond price

Long term growth.

• savings

• investments

• interest

• compound interest

What is interest ?

• Based on principal amount

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

• based on principal amount plus interest

A fund managed by a professional that invests in stocks & bond

• Mutual Funds

• Stocks

• Bonds

When you buy a share a stock you become part owner of that company

• Safety and risk

• Mutual funds

• Bonds

• stocks