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ENT II Unit 5
Arkansas Entrepreneurship II Unit 5
| Question | Answer |
|---|---|
| The actual interest rate an account pays per year | Annual Percentage Yield (APY) |
| Stock of an established and historically successful corporation | Blue chip stock |
| A written promise to pay a debt by a specified date | Bond |
| A company that specializes in helping people buy and sell stocks and bonds | Brokerage firm |
| Profit earned from selling stock at a price higher that its purchase price | Capital gain |
| The amount lost if selling stock at a price lower price than its purchase price | Capitol loss |
| A deposit in a savings institution that earns a fixed interest rate for a specified period of time | Certificate of Deposit (CD) |
| A financial institution that serves individuals and businesses with a variety of accounts, loans, and other financial services | Commercial bank |
| A voting share of stock that does not pay a set dividend | Common stock |
| Interest paid on the principal and also on previously earned interest, assuming that the interest is left in the account | Compound interest |
| A financial institution that offers memberships to people who share a common bond, such as people in a particular profession, company, church, or labor union | Credit union |
| Investing in various businesses with different levels of risk | Diversification |
| A share of corporation's profit paid to it's stockholders based on the number of shares of stock owned | Dividend |
| The amount printed on a bond | Face value |
| High-return, high-risk bonds or junk bonds | High-Yield Bond (HYB) |
| Trading stock based on information that is not available to the general public | Insider trading |
| Saving in a way that earns income | Investing |
| Sales fee paid when investing in a mutual fund | Load |
| A deposit for which the interest rate changes over time | Money market account |
| Business that accepts deposits from many people and invests them in a variety of ways | Mutual fund |
| A non-voting share of stock that pays a fixed dividend | Preferred stock |
| Money on deposit in a savings account, CD, or other savings options | Principle |
| A publication that describes how a fund is operated, the fund's investing objectives, and the fees it charges | Prospectus |
| Income earned on an investment | Return |
| The chance that an investment will decrease in value | Risk |
| Money that is put aside for a later use | Savings |
| An account offered by any savings institution in which money is deposited, interest is earned on the deposits, and the money can be withdrawn at any time | Savings account |
| A U.S. government bond issued for amounts of $50 to $10,000 | Savings bond |
| The government commission responsible for enforcing the laws concerning the trading of stocks and bonds | Securities and Exchange Commission (SEC) |
| A unit of ownership in a corporation | Share of stock |
| The amount paid on the average balance in an account once a year at the end of the year | Simple interest |
| The location where orders to buy or sell stock are sent and carried out | Stock exchange |
| When shares of stock are bought and sold | Stock transaction |
| A person who handles the transfer of stocks and bonds between buyer and seller | Stockbroker |
| An investor who owns part of a corporation because he or she owns shares of stock | Stockholder |