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Investment Terminology

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

 a portion of a company's profit paid to common and preferred shareholders. 


a)
interest
b)
revenue
c)
capital gain
d)
dividend
2.

The date specified in a note or bond on which the debt is due and payable

a)
due date
b)
maturity date
c)
payment date
d)
settlement date
3.

A long-term bond issued by a corporation to raise outside capital

a)
Corporate bond
b)
Government bond
c)
Municipal bond
d)
Treasury bond
4.

Negotiable short-term (one year or less) debt obligations issued by the U.S.

government and backed by its full faith and credit


a)
Treasury bills
b)
Treasury bonds
c)
Municipal notes
d)
Corporate debentures
5.

Another name for investments such as stocks or bonds


a)
currencies
b)
commodities
c)
securities
d)
real estate
6.

A collection of investments owned by one organization or individual, and managed as a collective whole with specific investment goals in mind.


a)
Investment strategy
b)
Asset allocation
c)
Portfolio
d)
Fund
7.

The degree to which you can tolerate volatility in your investment values


a)
Investment strategy
b)
Risk tolerance
c)
Market analysis
d)
Portfolio diversification
8.

Fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities


a)
Mutual fund
b)
Exchange-traded fund
c)
Pension fund
d)
Hedge fund
9.

The ability to have ready access to invested money. 


a)
Investment Risk
b)
Liquidity
c)
Profitability
d)
Asset Allocation
10.

The owner of common or preferred stock of a corporation. Also called shareholder


a)

Stockholder

b)
Investor
c)
Bondholder
d)
Equity Partner
11.

The fixed amount of money that an issuer agrees to pay the bondholders. It is most often a percentage of the face value of the bond


a)
Maturity date
b)
Interest rate
c)
Coupon payment
d)
Principal amount
12.

A lower-rated, usually higher-yielding bond, with a credit rating of BB or lower


a)
Investment-grade bond
b)
Treasury bond
c)
Municipal bond
d)
Junk bond
13.

The amount and frequency with which an investment fluctuates in value


a)
liquidity
b)
diversification
c)
stability
d)
volatility
14.

Annual percentage rate of return on capital


a)

Par value

b)

Nominal rate

c)

Return

d)

Yield

15.

Negotiable long-term (10 years or longer) debt obligations issued by the U.S. government and backed by its full faith and credit

a)
Municipal bonds
b)
U.S. Treasury notes
c)
Corporate bonds
d)
U.S. Treasury bonds
16.

Shares issued by a company which represents ownership in it. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. 


a)

equities

b)
mortgages
c)
bonds
d)

debentures

17.

A rise in the prices of goods and services, often equated with loss of purchasing power


a)
Deflation
b)
Stagnation
c)
Recession
d)
Inflation
18.

A shareholder vote on matters that require shareholders' approval


a)

Proxy

b)

Shareholder

election

c)

Yield

d)

Vote of confidence

19.

The process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns.


a)
Asset allocation
b)
Diversification
c)
Market timing
d)
Risk management
20.

The difference between a security's purchase price and its selling price, when the difference is positive


a)
Capital gain
b)
Market fluctuation
c)
Dividend income
d)
Capital loss
21.

 Acts like a loan or an IOU that is issued by a corporation, municipality or the U.S. government


a)
Mortgage
b)
Certificate of Deposit
c)
Stock
d)
Bond
22.

The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs.


a)
Investment strategy
b)
Portfolio management
c)
Asset allocation
d)
Risk assessment
23.

Asset purchased with an investment life of less than a year


a)
Short-term asset
b)
Long-term asset
c)
Fixed asset
d)
Current liability
24.

A group of similar securities, such as equities in a specific industry

a)
Sector
b)
Index
c)
Portfolio
d)
Market
25.

A long-term, growth-oriented investment representing ownership in a company; also known as 'equity


a)
Real Estate
b)
Mutual Fund
c)
Stock
d)
Bond
26.

A class of stock with a fixed dividend that has preference over a company's common stock in the payment of dividends and the liquidation of assets


a)
Preferred stock
b)
Convertible bonds
c)
Common stock
d)
Treasury stock
27.

Mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds


a)
Growth funds
b)
Income funds
c)
Equity funds
d)
Balanced funds