Exam 16: Managing Finances

A dividend is a payment to shareholders,on a per-share basis,from the company's earnings.

Using the Rule of 72,if you re-invest annually at 8 percent,in how many years will it take you to double your money?

________ are stocks,bonds,and mutual funds representing secured or financially valuable claims on the part of investors.

The ________ is an electronic securities exchange.

Mutual funds are created by companies that pool cash investments from individuals and organizations to purchase portfolio of stocks,bonds,and other securities.

The amount of money that is loaned and must be repaid is called the collateral.

What are the steps in the complicated process of financing a business?

Why does each type of investment have a risk-return (risk-reward)relationship?

What does a bull market represent?

A stock split is a stock dividend paid in additional shares to shareholders.

Interest from a loan is called current dividend yield and returns from stock dividends are commonly referred to as interest dividend yield.

Private owners lose some control of the company when shares are sold to the public.

More Americans are investing in the stock market through online trading.Explain the value of online trading.

With the advancement of online investing,keeping track of who owns what at any given time has become a monumental burden.

What are Freddie Mac and Fannie Mae?

When making an investment,the returns from an initial investment accumulate substantially over longer periods of time.

Why are stocks,bonds,and mutual funds known as securities?

The text states that today's NYSE is a hybrid market.What does this mean?

Which of the following is a function performed by an investment bank?

List two investment traits of common stock.