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

• principal

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

• entrepreneur

• stockbroker

• politician

• investor

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

• bond

• stockbroker

• stock

• commission

A business formed to manufacture or supply products or services for profit.

• stock

• company

• bond

• investment

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

What is a stock dividend?

• a capital gains

• the price the stock is sold for

• part of the company’s profits that is paid to owners

• the price paid when stock is sold to an investment bank