Investing And Financial Markets

What is one way in which bonds do not generate income for investors? Bonds appreciate in value. Bonds pay interest. Bonds pay dividends. Bonds pay a specified amount at maturity.

Which can be traded in a commodities market? cars computers oil clothing

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not? Yes, the payment of dividends indicates that a stock's value has increased. No, the payment of dividends indicates that a company has earned profits. Yes, the payment of dividends indicates that a company's assets have grown. No, the payment of dividends indicates that a company can repay investors.

Which are common types of bonds that are currently issued? Check all that apply. corporate bonds equity bonds municipal bonds Treasury bills Treasury notes war bonds

Are the buying and selling of stocks centralized activities? Why or why not? Yes, the New York Stock Exchange is the principal exchange for the nations of the world. No, people can buy stocks anywhere, and they do not need to go through a market. Yes, the world's stock markets are coordinated exchanges, and they are dependent on one another. No, there are many stock markets around the world, and they are independent of one another.

Which factors can affect a stock's price? Check all that apply. market performance the company's financial health the quantity products produced location of the company the economy

Which is true about investments and risk? Low-risk investments have a high return over the long run. High-risk investments usually fail. Safe investments are always somewhat profitable. Every investment carries some degree of risk.

Which best describes what generally occurs in financial markets? Debt and loans are traded. Assets are traded. Commodities are traded. Shares are traded.

Which are the most likely uses of capital invested in a business? Check all that apply. paying taxes hiring workers repaying investors producing goods distributing goods buying materials

Which best describes the role that government and business play in investments? They both use taxes to support a country's growth. They both invest money to earn a profit. They both receive capital to use for growth. They both act as angel investors for start-ups.

Which statement best describes how an investor makes money off debt? An investor makes money by issuing bonds. An investor makes money by earning interest. An investor makes money by raising capital. An investor makes money by being repaid for the principal.

Which best describes an investor's primary goal? to grow a business to earn a profit to bolster the economy to provide capital to a business

Which best describes what a market index does? An index measures market performance. An index measures economic trends. An index measures growth. An index measures the performance of a single stock.

Which term refers to the possibility of an investor losing some or all of an investment? risk likelihood probability chance

Once stocks are on the market, which best explains how their prices Rare set? Prices are controlled by the issuing company. Prices are set by the financial market. Prices follow economic trends. Prices fluctuate on the basis of demand.

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face? The issuer may not raise enough capital. The issuer could refuse to pay dividends. The issuer could go bankrupt. The issuer may not make a profit.