Chapter 9 review

Investing

• is buying a financial product or asset in an effort to increase your wealth over time.

• is a document that shows evidence of ownership or debt.

• refers to a share of ownership in a company.

• none

security is a document that shows evidence of ownership or debt.

• fase

• true

Stock

• refers to a share of ownership in a company.

• earns dividends when companies declare them.

Common Stock earns dividends when companies declare them.

• True

• False

• no

• yes

Preferred stock earns dividends when companies declare them

• True

• False

Dividend

• can vote at shareholder meetings on company policies and directors.

• companies whose names you recognize are public corporations.

• none

• A privately held corporation

Stock market also called a stock exchange

• True

• False

Fluctuations

• the ups and downs in the stock market.

• (the upward trends in the stock market)

• stock prices are falling or staying at a low level.

Recession

• none

• (the upward trends in the stock market) have lasted a lot longer than recessions.

• occurs when stock prices fall and unemployment rises

• spiral

Expansion (the upward trends in the stock market) have lasted a lot longer than recessions.

• True

• False