Shares of ownership in a company are called bonds.

When a company is doing well it may distribute the profits to its shareholders in the form of:

Dividends can be paid in cash or with additional shares

To help diversify their portfolio, an investor may choose to invest in a mutual fund which combines the funds of many different investors into a combination portfolio of stocks and bonds.

The type of investment where you lend money to a company or a government is called a

Funds are provided to the INITIAL issuer of securities in the SECONDARY market.

The Securities Act of 1933 was for this purpose:

Which of these is NOT a depository institution?

An example of a debt security is a bond.

The degree to which a security can be sold and converted into cash without a loss of value is known as

A long-term debt obligation created to finance the purchase of REAL ESTATE is called a mortgage.

Debt obligations to be paid out over the long-term that are commonly issued by governments or corporations to obtain long-term funds are called what?

If the business is privately held, the owners CANNOT sell their shares to the public.

What is a reason business owners hope to go public?

When a firm goes public, their shares are issued in the SECONDARY market in exchange for cash.

The government firm responsible for receiving a company's prospectus and quarterly financial reports is called -

IPO's occur more frequently during bear markets.

Primary markets facilitate the issuance of new securities, while secondary markets facilitate the trading of existing securities, which allows for a change in the ownership of the securities

Which is the most DOMINANT type of depository institution?

The following are all considered non-depository institutions EXCEPT:

Systemic Risk is the spread of financial problems, among financial institutions and across financial markets, that could cause a collapse in the financial system.

In general, securities with favorable characteristics will offer higher yields.  The riskier securities offer higher yields.  

Corporate securities have higher credit (default) risk than government securities.

A yield curve summarizes the relationship between the term of the debt and the interest rate associated with that term.

Some analysts believe that a flat or inverted yield curve indicates a period of economic growth is in the near future.

The financial statement that shows the worth of the company by indicating the company's assets, liabilities and owners' equity is known as the

The financial statement that shows the amount of income or loss incurred during a specific time period by comparing the company's revenues to its expenses is known as the

A bear market is when prices are dropping.

Which of these is NOT a popular stock index:

The January Effect states that portfolio managers prefer investing in riskier, small stocks at the beginning of the year and then shifting to larger, more stable companies near the end of the year.

All of these can affect a firm's stock price EXCEPT

Once an appropriate amount of liquid assets are reached it is recommended that individuals refocus goals from

Mutual funds are created when a company combines the funds of many investors and then invests that money in a diversified portfolio of stocks and bonds.

Individual households are able to issue bonds like a corporation can.

Investing is always less risky than saving.

Investing is best to accumulate wealth for retirement while saving is best for short-term purchases or emergencies.

Investing typically earns returns between 1-2% while saving generally earns returns between 5-7%

How can someone make money from investing in a stock?

Since the financial crisis of 2008, the government has increased its role in financial markets.

____ is the process of estimating the worth of a security.