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When you buy a ____ , you are loaning money to an organization.
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
What is the primary reason to issue stock?
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
How can investors receive compounding returns?
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
Why might a town decide to issue bonds?
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
What are dividends?
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
Which best describes the difference between stocks and bonds?
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
________ are typically comprised of a mix of ________ and ________
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
What happens when a bond becomes due?
Stocks allow investors to own a portion of the company; bonds are loans to the company
By investing their earnings back into their original investment
Bond
A distribution of a small percentage of profits to shareholders.
To help investors earn a higher rate of return
To help save money for their residents.
The issuer will pay you back, plus interest
Mutual funds; stocks; bonds
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