Chapter 11 Saving And Investing Options Answer Key

Chapter 11 saving and investing options answer key

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Chapter 11 - Financial Markets
Prentice Hall - Economics: Principles in Action; Chapter 11 - Financial Markets; Section 1 - Saving and Investing; Section 2 - Bonds and Other Financial Assets; Section 3 - The Stock Market;

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Term
Definition
the act of redirecting resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit
Term
Definition
the system that allows the transfer of money between savers and borrowers
Term
Definition
claim on the property or income of a borrower
Term
Definition
institution that helps channel funds from savers to borrowers
Term
Definition
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds and other financial assets
Term
Definition
spreading out investments to reduce risk
Term
Definition
a collection of financial assets
Term
Definition
an investment report to potential investors
Term
Definition
the money an investor receives above and beyond the sum of money initially invested
Term
Definition
borrowers may not pay back the money they have borrowed, or they may be late in making payments
Term
Definition
you may not be able to convert the investment back into cash quickly enough for your needs
Term
Definition
inflation rates erode the value of your assets
Term
Definition
you may have to pass up better opportunities for investment
Term
Definition
the interest rate that a bond issuer will pay to a bond holder
Term
Definition
the time at which payment to the bondholder is due
Term
Definition
the amount that an investor pays to purchase a bond and that will be repaid to the investor at maturity
Term
Definition
the annual rate of return on a bond if the bond were held to maturity
Term
Definition
a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks and schools
Term
Definition
a bond that a corporation issues to raise money and expand its business
Term
Securities and Exchange Commission (SEC)
Definition
an independent agency of the government that regulates financial markets and investment companies
Term
Definition
a lower-rated, potentially higher-paying bond
Term
Definition
market in which money is lent for periods longer than a year
Term
Definition
market in which money is lent for periods of less than a year
Term
Definition
market for selling financial assets that can only be redeemed by the original holder
Term
Definition
market for reselling financial assets
Term
Definition
Term
Definition
claims of ownership in a company, such as stock
Term
Definition
the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the seller
Term
Definition
the difference between a lower selling price and a higher purchase price, resulting in a financial loss to the seller
Term
Definition
the division of a single share of stock into more than one share
Term
Definition
a person who links buyers and sellers of stock
Term
Definition
a business that specializes in trading stocks
Term
Definition
a market for buying and selling stock
Term
Over-The-Counter (OTC) Market
Definition
an electronic marketplace for stocks and bonds
Term
Definition
American market for OTC securities
Term
Definition
contracts to buy or sell at a specific date in the future at a price specified today
Term
Definition
contracts that give investors the choice to buy or sell stock and other financial assets
Term
Definition
the option to buy shares of stock at a specified time in the future
Term
Definition
the option to sell shares of stock at a specified time in the future
Term
Definition
a steady rise in the stock market over a period of time
Term
Definition
a steady drop in the stock market over a period of time
Term
Definition
index that shows how certain stocks have traded
Term
Standard and Poor's (S&P) 500
Definition
index that shows the price changes of 500 different stocks
Term
Definition
the collapse of the stock market in 1929
Term
Definition
the practice of making high-risk investments with borrowed money in hopes of getting a big return
Term
Black Tuesday - October 29, 1929
Definition
record 16.4 million shares of stock were sold, marking the true beginning of the Great Crash
Term
Definition
the Dow reaches an all-time high of 381

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