Fnancial Markets: Securities

What is a bear market?

• A market characterized by declining prices
• A market characterized by increasing prices
• A market characterized by stable prices
• A market characterized by no trading activity

What is a bond yield?

• The return on investment generated by a bond
• The face value of a bond
• The price of a bond
• The coupon rate of a bond

What is a margin call?

• A request by a broker to deposit more money into a margin account
• A request by a broker to withdraw money from a margin account
• A request by a broker to buy more securities in a margin account
• A request by a broker to sell securities in a margin account

What is diversification?

• Spreading investments across different assets to reduce risk
• Concentrating investments in a single asset to increase risk
• Investing only in assets that are expected to perform well
• Investing only in assets that are expected to perform poorly

What is a market order?

• An order to buy or sell a security at the current market price
• An order to buy or sell a security at a specified price or better
• An order to buy or sell a security immediately at any price
• An order to buy or sell a security at a price determined by the broker

What is a bond?

• A debt security that pays interest to the investor
• A type of stock that represents ownership in a company
• A derivative that tracks the value of an underlying asset
• A type of currency used in foreign exchange markets

What is a stock index?

• A statistical measure of the performance of a group of stocks
• A type of bond that pays a fixed interest rate
• A type of stock that represents ownership in a private company
• A type of investment that provides a fixed return over a set period of time

What is a futures contract?

• An agreement to buy or sell an asset at a specific price on a future date
• A type of bond that pays a fixed interest rate
• A type of investment that provides a fixed return over a set period of time
• A type of stock that represents ownership in a private company

What is a margin account?

• A brokerage account that allows investors to borrow funds to buy securities
• A type of bond that pays a fixed interest rate
• A type of stock that represents ownership in a private company
• A type of investment that provides a fixed return over a set period of time

What is a put option?

• An option contract that gives the owner the right to sell an asset at a specific price on a future date
• An option contract that gives the owner the right to buy an asset at a specific price on a future date
• An option contract that gives the owner the right to receive a fixed payment
• An option contract that gives the owner the right to exchange one asset for another