Financial Markets

Question Answer
receipt showing that an investor has made an interest-bearing loan to the financial institution certificate of deposit (CD
monthly, quarterly, semiannual, or annual price paid for an insurance policy premium
fund that collects and invests income until payments are made to eligible recipients pension fund
the technique of spreading funds over a large number of investments to reduce the portfolio's overall risk diversification
formal contract to repay borrowed money and interest on the borrowed money at regular future intervals bond
principal of a bond or total amount borrowed par value
stated interest on a corporate, municipal or government bond coupon rate
bond’s annual coupon interest divided by purchase price; measure of a bond’s return current yield
exceptionally risky bond with a Standard & Poor’s rating of BB or lower that carries a high rate of return as compensation for the higher possibility of non-payment junk bonds
a type of investment, often tax exempt, issued by state and local governments; known as munis municipal bonds
low-denomination, non-transferable bonds issued by the federal government, usually through payroll savings plans savings bonds
United States government obligation with a maturity of 2 to 10 years Treasury notes
United States government bond with maturity of 30 years Treasury bonds
short-term United States government obligation with a maturity of 4, 13, 26, or 52 weeks and a minimum denomination of $100 Treasury bills
retirement account in the form of a long-term time deposit, with annual contributions not taxed until withdrawn during retirement Individual Retirement Accounts (IRAs)
market in which financial capital is loaned and/or borrowed for more than one year capital market
a market in which financial capital is loaned and/or borrowed for one year or less money market
market in which only the original issuer can sell or repurchase a financial asset; government savings bonds, IRAs, small CDs primary market
market in which all financial assets can be sold to someone other than the original issuer; corporate bonds, government bonds secondary market
stocks that represent ownership shares in corporations equities
company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other mutual fund
the market value of a mutual fund share determined by dividing the value of the fund by the number of shares issued net asset value (NAV)
a tax-deferred investment and savings plan that acts as a personal pension fund for employees 401(k) plan
an index of 30 representative stocks used to monitor price changes in the overall stock market Dow Jones Industrial Average (DJIA)
an index of 500 stocks used to monitor prices on the NYSE, American Stock Exchange, and the OTC market Standard & Poor's 500 (S&P 500)
period during which stock market prices move up for several months or years in a row bull market
period during which stock market prices move down for several months or years in a row bear market
an agreement to buy or sell at a specific date in the future at a predetermined price futures contract
contract giving investors an option to buy or sell commodities, equities, or financial assets at a specific future date using a price agreed upon today option

Leave a Reply

Your email address will not be published. Required fields are marked *