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Investing is considered to take a___perspective of purchasing securities. |
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| ____is viewed as a short-term activity that involves buying and selling of securities in which future value and returns are highly uncertain. |
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| according to the textbook, which of the following investment objectives is single most important reason for investing? |
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| which of the following represents an IOU for the issuer? |
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| if I own a bond with a 7% interest rate and it matures during a declining interest rate economy, I would be subject to__risk |
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| if I own stock in a company that is losing market share and has a poor management team, I would subject to___risk. |
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| If I own stock in a company that is highly leveraged with long-term debt, I would be subject to ___risk |
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| which two items make up the basic sources of return on an investment? |
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Definition
current income and capital gains |
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| as an investor, if I want a higher level of return, I will probably have to accept a(n)__exposure to risk. |
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| with stocks, the firm's annual earnings are usually reported in terms of___ |
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| the___is importatnt to investors because is reveals how aggressively the stock is being priced in the market |
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| a stock's beta is an indication of its price volatility and is used to measure a stock's___risk. |
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| Securities are traded between investors in the __market. |
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| an order to buy or sell a security at the best price available at the tiem it is placed is a___order. |
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| an order to sell a stock when the market price reaches or drops below a specified level is called a___order |
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| stock prices go up in___markets, which are associated with investor optimisu, economic recovery, and growth |
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| when securities are purchased with borrowed funds, they are purchased on___ |
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| when a company has earnings it can retain them to reinvest in the company or pay them out to shareholders in the form of a___ |
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| Bonds are considered "junk" bonds if they have financial ratings of___or below |
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| which of the following is NOT one of the reasons people invest in mutual funds? |
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Definition
| individual portfolio design |
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Term
| the majority of all mutual funds are___ |
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Definition
| open-end investment companies |
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Term
| the___feature stipulates whether a bond can be retired before its regularly scheduled maturity date and if so, under what conditions. |
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| a___bond is one that sells for more than its par value |
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Definition
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| a/an___allows me to buy additional shares of the mutual funds with my dividends and capital gains |
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Definition
| automatic reinvestmetn plan |
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Term
| Stocks whose appeal is based primarily on the dividends they pay are known as___stocks |
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| stocks whose prices and returns are expected to remain stable during periods of contraction in the economy and business activity are knwo as___stocks |
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| blue-chip stocks generally fall into the ___category |
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| a basic trading rule in the bond market is the interest rates and bond prices move in___directions |
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Definition
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| the most popular type of unsecured bond is a/an___ |
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Definition
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| mutual funds that are sold without a sales commission are know as___funds |
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Definition
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| when you retire and are ready for regular income from your mutual funds, you might set up a/an___plan |
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Definition
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| the annual rate of return I would receive if I purchased a bond in the secondary market and held it until maturity is called the____. |
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Definition
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| Name two reason that investors buy bonds. |
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Definition
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| the amount of interest paid on a bond is a function of the____, which defines the annual interest that will be paid by the issure to the bondholder |
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Definition
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| a___feature gives the bond issuer the right to pay off the bond prior to its maturity. |
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| a big attraction for investing in real estate is the high degree of financial___it permits |
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Name one of the bond rating companies |
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| NAV is an acronym that stands for___ |
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| Name two of the attractions to investing in real estate |
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Definition
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| the securities act of___was passed by congress to ensure full disclosure of information with respect to new security issure and to prevent a stock market collapse similar to that of 1929. |
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| a security transaction of fewer than 100 shares of stock is considered a(n)___lot |
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Definition
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| Name the largest and most prestigious organized securities exchange in the world. |
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Definition
| The New York Stock Exchange |
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Term
| the idea behind___is to combine securities with dissimilar risk-return characteristics to maintain an acceptable level of return while reducing overall portfolio risk. |
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Definition
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Term
a statement that specifies how investment capital will be invested to achieve a specified goal |
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Definition
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| the market place in which stocks, bonds, and other financial instruments are traded |
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Definition
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Definition
| issued as stock and, as such, represent an equity position in a porporation. they have fixed dividend rate, payment of which is given preference over dividends to holders of common stock. |
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Definition
| a special type of fixed-income obligation that carries a conversion feature permitting the investor to convert it into a specified number of shares of common stock |
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| the price at which one can purchase a security |
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Definition
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| the price at which one can sell a security |
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a person who buys and sells securites on behalf of clients and give them investment advice and information |
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Definition
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a quantity of 100 shares of stock, or mutiples thereof |
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Definition
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Term
| an order to buy or sell a security at the best price available at the time it is placed |
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Definition
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a report made available to stockholders and other interested parties that includes a variety of financial and descriptive information about a firm's operations in the recent past. |
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Definition
| annual stockholders' report |
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Term
the most widely followed measure of stock market perfomance; consists of 30 blue-chip stocks listed mostly on NYSE |
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Definition
| Dow Jones Industrial Average (DJIA) |
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Term
| the general behavior of the securities market |
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Definition
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Term
| indexes compiled by Standard & Poor's that are similar to the DJIA but employ different computational methods and consist of far more stocks |
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Definition
| Standard & Poor's (S&P) indexes |
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Term
| an index of the total market value of the 6,000 to 7,000 or so most actively traded stocks in the country |
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Definition
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Term
| an investor who buys and sells stocks (and other securities) rapidly throughtout the day in hopes of making quick profits |
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Definition
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| a type of risk associated with the mix of debt and equity financing used by the issuing firm |
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Definition
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| a type of risk associated with the price volatility of security |
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Definition
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Term
| the percentage return provided by the divideds paid on common stock |
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Definition
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| the return earned on behalf of each share of common stock; calculated by dividing all earnings remaining after paying preferred dividends by the number of common shares out standing |
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Definition
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| an index of the price volatility for a share of common stock; a reflection of how the stock price responds to market forces |
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Definition
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a stock generally issued by companies expected to provide an uninterrupted stream of dividends and good long-term growth prospects (they are the big companies, top 1 or 2 in their area) |
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Definition
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| a stock whose earnings and market price have increased over time at a rate well above average |
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| stock that is purchased on the hope that its price per share will increase |
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stock whose price movements tend to parallel the various stages of the business cycle |
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Definition
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| a stock whose total market value falls somewhere between $1 billion and $4 or $5 billion |
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Definition
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| a stock with a total market value of less than $1 billion |
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Definition
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Term
| a program whereby stockholders can choose to take their cash dividends in the form of more shares of the company's stock |
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Definition
| dividend reinvestment plan (DPR) |
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Term
| a bond secured by a claim on real assets, such as a manufacturing plant |
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Definition
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a bond issued by state or laocal governments; interest income is usually exempt from federal taxes |
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Definition
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| the provision in a convertible issue that stupulates the conditions of the conversion feature, such as the conversion period and conversion ratio |
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Definition
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a ration specifing the number of shares of common stock into which a convertible bond can be concerted |
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Definition
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a bond with a market value lower than par |
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Definition
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| the amount of current income a bond provides relative to its market price |
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Definition
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a process whereby investors by into a diversified portfolio of securities for the collective benefit of individual investors |
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Definition
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Term
| a firm that can issue an unlimited number of shares that it buys and sells at a price based on the current market value of the securities it owns; also called a mutual fund |
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Definition
| open-end investment company |
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Term
| an investment company that issues a fixed number of shares, which are themselves listed and traded like any other share of stock |
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Definition
| closed-end investment company |
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Term
| a fund that charges a fee at time of purchase |
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Definition
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Term
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Definition
| a fund that has a low purchase fee |
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| a commission charged for redeeming fund shares |
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Definition
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| a fee, charged annually that's supposed to be used to offset the promotion and selling expenses |
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Definition
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a fee paid to the professional money managers who administer a mutual fund's portfolio |
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Definition
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Term
| a plan that allows share owners to elect to have dividends and capital gains distributions reinvested in additional funds shares |
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Definition
| automatic reinvestment plan |
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Term
a plan offered by mutual funds that allows shreholders to be paid specified amounts of money each period |
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Definition
| systematic withdrawal plan |
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Term
represent ownersip in a pool of mortgage loans, typically on residential properties |
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Definition
| mortgage-backed securities |
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