Name __________________
INVESTMENT TERMS
Directions: Define the following investment terms. If the term is listed as an acronym, list what it stands for and provide
a definition. Provide a thorough definition with examples to receive full credit.
Stock Market Terms
1. Stock prices are determined by:
-1 share of __________ stock equals 1 ________.
-3 examples of specific situations that will cause the price to change:
2. Publicly Traded:
3. NYSE:
4. NASDAQ:
5. Dow Jones:
6. S & P 500:
7. The U.S. Stock Market is open Monday - ________ from _____to ______ and are monitored by the ________.
8. Blue Chip Stock:
-Examples:
-Blue Chip stock almost always offer a ____________.
9. Growth Stock:
-typically have a _________ P/E than most stocks and do not have a dividend
-Examples:
10. Penny Stock: any stock that trades for less than _____ per share and is not listed on the major exchanges such as the
__________________________________.
-Examples:
11 Bear Market vs. Bull Market:
12 Dividend:
-Example: Microsoft (msft) offers a 5% dividend. The current price is $50 per share and you have
100 shares. What is your dividend payout? (show the math)
13. Stock Split:
-Example: Cisco Systems (csco) has a current stock price of $100 per share and you own 20 shares. The stock
executes a 2:1 split. List the new share price, number of shares you own and the total value of your investment.
(after split)
Name
Cisco
Price
$100
Cisco
_________
Number of Shares
20
_________
Total Value
_________
_________
14. The basic advice to make money in the stock market is, “buy ________ and sell ________.”
15. Portfolio & Diversification:
16. Dollar-cost averaging:
17. Short Selling:
18. Buying on Margin:
19. What are the two ways to make money in the stock market?
Investment Terms
20. APR:
21. APY:
22. Savings Account:
23. MMA:
24. CD:
25. Rewards Checking:
26. Websites to research the best interest rates?
27. ROI:
28. Rule of 72:
-Example: an investment earning 18% each year will take ______ years to double
-Example: an investment earning 12% each year will take ______ years to double
-Example: an investment earning 4% each year will take ______ years to double
29. Mutual Fund:
30. Bond:
31. Face Value of a Bond:
32. Corporate Bond:
33. Junk Bond:
34. Government Bond:
35: Treasury bills:
36. What is the difference between simple and compound interest? What do most banks offer?
37. When you save, you trade spending ______ for the ability to spend in the ________.
38. The best way to save successfully is to make saving a regular payment from each ___________.
39. How do you plan to save money over the next few years?
40. Assume you are 25 years old and have no debt (which would be amazing & awesome). You have $10,000, what
would you invest in & why?