Q2M8

What is the money earned in trade or business after paying costs called?

• Profit

• Investment

• Stock

• Bond

What is another name for a bond's interest rate?

• Principal

• Par value

• Coupon rate

• Face value

Who is a person or entity that allocates capital expecting financial returns?

• Entrepreneur

• Stockholder

• Politician

• Investor

What describes ownership certificates of a company?

• Bond

• Stock

• Stockbroker

• Commission

What is a business formed to manufacture or supply products for profit called?

• Company

• Investment

• Stock

• Bond

What is the term for an activity where money is put at risk to make a profit?

• Invest

• Collect

• Buy

• Sell

What is a bond's coupon?

• Purchase price

• Value at maturity date

• Interest earned

• Value at issue date

What is a bond?

• Group of stocks

• Payment for future profits

• Certificate of ownership

• Certificate representing a loan

Why would someone buy a bond instead of a stock?

• Dividend payments

• Higher return

• Ownership in a company

• Less risky investment

What is a stock dividend?

• Capital gains

• Price sold for

• Price paid to investment bank

• Part of profits paid to owners