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5 Written questions

5 Matching questions

  1. common stock
  2. round lot
  3. bonds
  4. liquidity
  5. Dow Jones Industrial Average
  1. a shares of ownership in a corporation that give stockholders voting rights and a portion of future profits (after holders of preferred stock are paid)
  2. b a measure of stock market prices based on thirty leading companies of the New York Stock Exchange
  3. c an investment that is easily converted into cash
  4. d stocks are usually purchased in multiples of 100 shares, called _________.
  5. e certificates of ownership of a portion of a debt that is due to be paid by a government/corporation to an individual; usually bearing a fixed rate of interest

5 Multiple choice questions

  1. stock prices are rising, investors are optimistic
  2. the investment value of each share of a mutual fund, or the pirce per share that you can buy a fund
  3. to buy a variety of stocks or other investments to spread risk
  4. bonds issued by the federal government as a way of borrowing money; they are purchased at half the face value and increase every 6 months until full face value is reached
  5. money that is made by selling an asset like a home or stocks

5 True/False questions

  1. limit orderan order to purchase stocks at a specified price


  2. Price- earnings ratio (P/E)to buy a variety of stocks or other investments to spread risk


  3. market orderan order to purchase stocks at the current price


  4. initial public offeringthe process through which companies obtain money to expand their businesses through stocks and bonds


  5. New York Stock Exchangethe largest stock exchange, located in New York


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