Classwork 11.2.2-11.3

Match the following

• stock

• I am interested in a diversified portfolio, spreading risk across stocks and bonds. I am willing to accept some risk.

• treasury bond

• I want to buy equity in a company and am willing to accept risk.

• treasury bill (T bill)

• I am interested in a short-term government investment that matures after half of a year.

• mutual fund

• I am interested in a small, government investment with a maturity date of 25 years.

• treasury note

• I am interested in a small, government investment with a maturity date of 7 years.

Identify if the following investments are capital (long-term) or money (short-term) markets

Groups:

(a) Capital Market

,

(b) Money Market

• IRA

• Treasury bill

• 6-month CD

• EE savings bond for college

• Treasury notes and bonds

-This is an INDIVIDUAL retirement plan, all money is tax-sheltered

- This is an employer-provided retirement plan, where employers typically match contributions after a vesting period.  _______________

• IRA

  401(k)

• 401(k)

  IRA

True or False: In a SECONDARY market, only the original issuer can sell or repurchase a financial asset.

• true

• false

What of the following are indicators of stock market performance?

• NYSE

• Moody's

• Dow Jones Industrial Average

• S&P 500

The Great Recession of 2008-2009 is an example of a ___________________ (bull/bear) market.

• bull

• bear

True or False: If I anticipate that the price of gold will increase in six months, it would be wise for me to buy a futures contract.

• true

• false

Examine column PE. The 10.25 for ExxonMobil tells us that an investor would have to buy $10.25 of stock to get $1 of current earnings. Would it be a better deal or a worse deal to buy shares of Fedex Corp? Why?

Look at the columns labeled “LAST” and “NET CHG.” LAST is the closing price of the stock at the end of the trading day. NET CHG is the amount that the stock price changed from the day before. Use these two columns to determine what the closing prices were for the previous day, for ExxonMobil.