Chapter 31: Investing

________ refers to how easily an investment can be turned into cash.

A(n) ________ is a tradable document that shows evidence of debt or ownership.

________ are sold to finance city, town, or regional projects such as schools, highways, and airports.

The return on an investment is the amount of money the investment earns, or the ________.

________ are sold in units of $ 1, 000.

Companies that sell stock must follow rules set up by the Securities and Exchange Commission, or ________.

They are usually used to finance ________ and equipment.

The ________ is an electronic stock market system that quotes over- the- counter securities.

A(n) ________ is a person who buys and sells stocks, bonds, and other securities for clients.

A Series ________ savings certificate costs half the amount of its face value to buy.

Investing is using money to participate in an enterprise that offers the ________.

________ may be sold at a discount, or below their face value.

A(n) ________ is an amount lost when an asset is sold for less than its cost.

________ are discounted securities, which means the purchase price that investors pay is less than the face value of the ________.

________ are usually paid quarterly in cash or in more shares of stock.

A(n) ________ is a profit made from the sale of a financial asset such as stock or a bond.

Generally, the ________ on notes and bonds are higher than on T- bills because of the increased risk of the rates rising or falling during the length of time until the note or bond matures.

________ lessen the risk of investing in the stock market.

________ is the value of a security that is set by the company or government that is issuing it.

A bond is a certificate issued by a government or company in which it promises to pay back borrowed money at a fixed rate of interest on a specified date (the ________)

A(n) ________ is a share of ownership in a corporation.

The ________ issues four basic types of securities: Treasury bills (or T- bills), notes, bonds, and savings bonds.

________ can be bought and sold through brokerage firms.

The ________ is a U.S. government agency that supervises the exchange of securities to protect investors from wrongdoing.

________ act as a link between buyers and sellers.

A(n) ________ is a fund created by an investment firm that raises money from many shareholders and invests it in a variety of stocks or other investments.

government bonds and corporate bonds

Treasury bills (or T-bills), notes, bonds, and savings bonds

term comparisons of returns on stocks and returns from savings accounts or bonds show stocks do better over time