SLIDE 1.1 The Language of Financial Markets Quiz Bowl Game Board Invest in This Potent Index or Investments Exchange Earn It Who am I? Financial Markets Potpourri 10 10 10 10 10 10 20 20 20 20 20 20 30 30 30 30 30 30 40 40 40 40 40 40 50 50 50 50 50 50 SLIDE 1.2 Invest in This: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at an agreed interest rate. CLICK TO CHECK SLIDE 1.3 The correct answer is… Bond 10 RETURN TO GAME BOARD SLIDE 1.4 Invest in This: An ownership share or shares in a corporation. CLICK TO CHECK SLIDE 1.5 The correct answer is… Common Stock 20 RETURN TO GAME BOARD SLIDE 1.6 Invest in This: A company that pools money from investors and uses it to buy stocks or bonds on the investors’ behalf. CLICK TO CHECK SLIDE 1.7 The correct answer is… Mutual Fund 30 RETURN TO GAME BOARD SLIDE 1.8 Invest in This: A stock that often pays no dividend, but the stockholder gains if the price of the stock increases. CLICK TO CHECK SLIDE 1.9 The correct answer is… Growth Stock 40 RETURN TO GAME BOARD SLIDE 1.10 Invest in This: An ownership share in a corporation with a guaranteed dividend that is paid before dividends are paid on common stock. CLICK TO CHECK SLIDE 1.11 The correct answer is… Preferred Stock 50 RETURN TO GAME BOARD SLIDE 1.12 Potent Investments: Buying stock by paying a percentage of the purchase price (typically 50 percent) and borrowing the balance from a broker. CLICK TO CHECK SLIDE 1.13 The correct answer is… Buying on Margin 10 RETURN TO GAME BOARD SLIDE 1.14 Potent Investments: An investment fund normally with a limited number of investors focusing on a specific type of investment strategy. These tend to be subject to less regulation and fewer restrictions than many other investments. CLICK TO CHECK SLIDE 1.15 The correct answer is… Hedge Fund 20 RETURN TO GAME BOARD SLIDE 1.16 Potent Investments: The right, but not the obligation, to buy or sell a specific amount of a given financial asset at a specific price during a specified period of time. CLICK TO CHECK SLIDE 1.17 The correct answer is… Option 30 RETURN TO GAME BOARD SLIDE 1.18 Potent Investments: The degree of uncertainty associated with the return on an asset or the value of an asset. CLICK TO CHECK SLIDE 1.19 The correct answer is… Risk 40 RETURN TO GAME BOARD SLIDE 1.20 Potent Investments: A stock transaction that allows an investor to make money on a stock expected to fall in value. This transaction involves the immediate sale of share not owned by the seller, who expects to buy them back later at a lower price. CLICK TO CHECK SLIDE 1.21 The correct answer is… Short Selling 50 RETURN TO GAME BOARD SLIDE 1.22 Index or Exchange: Stands for American Stock Exchange, formerly an independent market but now part of the New York Stock Exchange. CLICK TO CHECK SLIDE 1.23 The correct answer is… AMEX 10 RETURN TO GAME BOARD SLIDE 1.24 Index or Exchange: The most commonly known stockmarket indicator and is an index of thirty large and well-known companies. CLICK TO CHECK SLIDE 1.25 The correct answer is… Dow Jones Industrial Average 20 RETURN TO GAME BOARD SLIDE 1.26 Index or Exchange: Founded in 1971, this stock market is the world’s largest in terms of trading volume and is the home to many technology stocks including Apple, eBay, Intel, and Yahoo!. CLICK TO CHECK SLIDE 1.27 The correct answer is… NASDAQ Stock Market 30 RETURN TO GAME BOARD SLIDE 1.28 Index or Exchange: The oldest stock exchange in the United States, founded in 1792 and in 2007 merged with the European stock exchange Euronext. CLICK TO CHECK SLIDE 1.29 The correct answer is… New York Stock Exchange 40 RETURN TO GAME BOARD SLIDE 1.30 Index or Exchange: Stands for the Standard and Poor’s 500 Stock Index. The index includes 500 large and varied stocks. CLICK TO CHECK SLIDE 1.31 The correct answer is… S&P 500 Stock Index 50 RETURN TO GAME BOARD SLIDE 1.32 Earn It: A profit realized from the sale of property, stocks or other investments. CLICK TO CHECK SLIDE 1.33 The correct answer is… Capital Gain 10 RETURN TO GAME BOARD SLIDE 1.34 Earn It: A percentage of a stock trade (buy or sell) paid to a stockbroker. CLICK TO CHECK SLIDE 1.35 The correct answer is… Commission 20 RETURN TO GAME BOARD SLIDE 1.36 Earn It: A share of a company’s profits paid to shareholders. CLICK TO CHECK SLIDE 1.37 The correct answer is… Dividend 30 RETURN TO GAME BOARD SLIDE 1.38 Earn It: The market value of anything being offered for sale. CLICK TO CHECK SLIDE 1.39 The correct answer is… Price 40 RETURN TO GAME BOARD SLIDE 1.40 Earn It: Money earned from an investment. The money could be profits, interest, appreciation or a combination. CLICK TO CHECK SLIDE 1.41 The correct answer is… Return 50 RETURN TO GAME BOARD SLIDE 1.42 Who Am I? A professional who buys and sells stocks for individuals and institutional customers. CLICK TO CHECK SLIDE 1.43 The correct answer is… Broker 10 RETURN TO GAME BOARD SLIDE 1.44 Who Am I? Someone who buys and sells stocks from his or her own accounts or the accounts of the firm he or she works for. CLICK TO CHECK SLIDE 1.45 The correct answer is… Dealer 20 RETURN TO GAME BOARD SLIDE 1.46 Who Am I? An organization (an insurance company or pension fund, for example) that invests in the stock market. CLICK TO CHECK SLIDE 1.47 The correct answer is… Institutional Investor 30 RETURN TO GAME BOARD SLIDE 1.48 Who Am I? A financial firm that agrees to underwrite a new issue of stocks or bonds and sell them to other investors. CLICK TO CHECK SLIDE 1.49 The correct answer is… Investment Banker 40 RETURN TO GAME BOARD SLIDE 1.50 Who Am I? A person who owns stock; sometimes called a shareholder. CLICK TO CHECK SLIDE 1.51 The correct answer is… Stockholder 50 RETURN TO GAME BOARD SLIDE 1.52 Financial Markets Potpourri A stock that pays a regular dividend. CLICK TO CHECK SLIDE 1.53 The correct answer is… Income Stock 10 RETURN TO GAME BOARD SLIDE 1.54 Financial Markets Potpourri The first sale of stock by a private company to the public. CLICK TO CHECK SLIDE 1.55 The correct answer is… Initial Public Offering 20 RETURN TO GAME BOARD SLIDE 1.56 Financial Markets Potpourri The ease with which savings or investments can be turned into cash. CLICK TO CHECK SLIDE 1.57 The correct answer is… Liquidity 30 RETURN TO GAME BOARD SLIDE 1.58 Financial Markets Potpourri A network of securities dealers connected by a computer network to buy and sell stock without a centralized trading floor. CLICK TO CHECK SLIDE 1.59 The correct answer is… Over-the-Counter Market 40 RETURN TO GAME BOARD SLIDE 1.60 Financial Markets Potpourri The division of the outstanding number of shares into a higher number of shares. The purpose is to lower the price of the stock to attract more buyers. CLICK TO CHECK SLIDE 1.61 The correct answer is… Stock split 50 RETURN TO GAME BOARD