Financial Markets

Certificate of deposits (CDs)

• are issued by banks

• are attractive to small investors

• having varying rates of maturity

• all of the above

What is a corporate bond?

• a bond issued by a local government but sold by a corporation

• another name for corporate stock

• a bond issued by a corporation as a way to borrow money

• a high-risk investment in a small, family-owned company

The highest bond rating is

• D+

• AAA

• BB

• CCC

When a company declares bankruptcy, who is paid 1st?

• the CEO

• the lowest-paid workers

• the company's bond holders

• the company's shareholders

When a stock pays an income that is based off the company's profits this is called

• a derivative

• an option

• a dividend

• a discount from par

A steady drop in the price of stocks over time is called a __ market

• 
• 

Investors who are voting owners in the company. They have one vote per share of the stock they own.

• capital market

• common stock

• preferred stock

• original owners

What is the money an investor receives above & beyond the money initially invested called?

• savings

• liquidity

• retrograde

• return

To finance the building of a new police station, a local government is most likely to issue a

• money market bond

• municipal bond

• treasury bond

• high-yield bond

When you invest in a mutual fund,

• you have easier access to your money than a savings account

• you are guaranteed a fixed return on your investment

• money that has been pooled from many investors is invested in a variety of stocks & bonds

• your money is invested in a variety of insurance policies