Stocks and Bonds Vocab

What is a Bear Market?

• A market in which prices are rising, encouraging buying.

• A market in which prices are stable, encouraging holding.

• A market in which prices are falling, encouraging selling.

• A market in which prices are unpredictable, encouraging speculation.

What is a Bond?

• A type of stock that pays dividends.

• A security in which the investor loans money to a company or government.

• A savings account with a fixed interest rate.

• A mutual fund that invests in real estate.

What is a Capital Gain?

• Profit from the sale of an asset, calculated by subtracting the purchase price from the selling price.

• A loss incurred from selling an asset for less than its purchase price.

• A fixed interest payment received from a bond.

• A dividend payment received from a stock.

What is an Index Fund?

• A high-fee portfolio of stocks chosen randomly.

• A low-fee portfolio of stocks chosen to track or mimic a stock market index.

• A fund that invests only in technology stocks.

• A fund that invests in real estate properties.

What is Inflation?

• The rate at which the price of goods decreases over time.

• The rate at which the price of goods increases and consumer purchasing power decreases over time.

• A measure of economic growth.

• A measure of stock market performance.

What is Investing?

• The process of spending money on luxury items.

• The process of setting money aside to increase wealth over time for long-term financial goals.

• The process of saving money in a bank account.

• The process of borrowing money for short-term needs.

What is a Municipal Bond?

• A bond issued by a corporation to raise capital

• A bond issued by a state or local government for public works

• A bond issued by a foreign government

• A bond issued by a private investor

What is Nasdaq known for?

• The largest stock exchange in the world

• The second largest stock exchange in the world

• A small local stock exchange

• A bond trading platform

Where is the New York Stock Exchange (NYSE) located?

• Los Angeles

• Chicago

• New York City

• San Francisco

What does a Portfolio consist of?

• Only stocks

• Only bonds

• A mix of financial investments like stocks, bonds, and cash

• Only real estate