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Stock Market Game L3

Total questions: 5

Worksheet time: 3mins

Name
Class
Date
1.

An individual investor’s ability to accept loss of some or all of the money they have invested. A person’s risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.

a)

Risk Tolerance

b)

Dividend Management

2.

A group of stocks, often in one industry. The performance of any single stock can be measured against the performance of the group. Pharmaceutical companies are considered in the health care sector for example.

a)

Sector

b)

Beta

3.

The date when the principal amount of a security is payable

a)

Profit

b)

Maturity

c)

52 weeks range

d)

Every Monday

4.

Failure to pay principal or interest when due. It can also occur for failure to meet non-payment obligations, such as reporting requirements, or when a material problem occurs for the issuer, such as a bankruptcy.

a)

Penalty

b)

Fund

c)

Default

d)

Risk

5.

To attract investors, the issuers of these bonds pay a higher rate of interest than investment grade bonds with the same maturity. They are rated below investment grade bonds and are also called “Junk Bonds.”

a)

Popular Stocks

b)

High-Yield Bonds