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• Degree to which the value of an investment moves up and down.
• Volatility
• Number that corresponds to volatility or market risk of a security compared to the general market.
• Beta
• Spreading of investments among different types of securities, companies or locations to reduce risk.
• Diversification
• Who is doing the best in this class for term 3?
• The one with the highest average for term 3
• What determines the type of mutual fund one would invest money in?
• Its objective
• Boston Marathon starts in what town?
• Hopkinton
• Type of stock issued by a company with a capitalization between $500 million and $2 billion. They are considered to be a higher investment risk.
• Small cap stock
• Disney character quiz. Villain. Proud owner of two eels. Use to rule the sea.
• Ursula
• What is market capitalization?
• Share price multiplied by # of shares (the amount it would cost for you to buy every single share of a company)
• What does a PE Ratio tell you?
• If a stock is overpriced or undervalued compared to other companies. (comparison of stock price to earnings)
• For a corporate bond, par value and face amount means the same thing. True or False?
• True
• Type of stock that is considered a safe investment .Attracts conservative investors. Are generally the strongest and most respected companies.
• Blue Chip or Large Cap Stock
• If Greece defaults on a government bond, what does that mean?
• It is unable to pay an investor (interest and face value)
• Stock price for a company was $79. It went up to $91. What was the percent increase in the stock price?
• 15%
• Type of bond that provides no interest payments and is redeemed for its face value at maturity. i.e. Savings Bond
• Zero coupon bond
• Disney character quiz. Villain. Proud owner of two eels. Use to rule the sea.
• Ursula
• Type of stock that typically sells for less than $1 a share. Prices are very volatile and can fluctuate wildly up and down. Companies' sales are very unsteady. High risk.
• Penny Stock
• Bruce Wayne’s (Batman)butler?
• Alfred
• Prior Day's Closing Share Price: $50.50Today's Closing Share price: $61.25Quarterly Dividend of $2.075
• What is change in stock price as a %?
• 21%• What is the yield?• 13.55%
• Type of investing in which your investments are all in the same type of industry.
• Sector investing
• How frequently are mutual funds priced?
• Daily
• Type of bond a government authority (town, city, county) would issue to build a new school, highway or airport.
• Municipal
• If a company has 1,000 outstanding shares and a share price of $30. It pays a $2/share quarterly dividend. What is its market capitalization?
• 30,000
• What does N.A.V. stand for?
• Net Asset Value
• How frequently is a NAV priced for a mutual fund?
• Daily - at the end of the day when market closes.
• Provide one example of an index for the stock market.
• DJIA, S&P500
• This is a formula for what? Current share price divided by EPS
• PE ratio
• The names of the parents in 101 Dalmations?
• Pongo and Perdita
• An Income Mutual Fund produces monthly income to an investor. True or False?
• True
• Would it have a yield?
• Yes
• When interest is earned on interest and principal. It allows your principal to snowball.
• Compounding
• 4 US Presidents born in Massachusetts?
• John Adams, JQ Adams, JFK, George HW Bush
• Ticker symbol for Apple
• AAPL
• Ticker symbol for Orange
• No such thing
• Name some advantages of investing in a mutual fund rather than purchasing an individual stock from E-Trade?
• Professional management, diversification (less risk)
• Massachusetts State Bird
• chickadee
• If a mutual fund is front-loaded, then it means the investor is paying a sales charge or commission on investments. True or False.
• Absolutely True.
• This ratio is calculated by dividing the stock's last closing price by its earnings per share for the latest year.
• Price -Earnings Ratio (PE Ratio)
• A declining stock market in which investors are pessimistic.
• Bear Market
• Are Corporate Bonds paid at maturity?
• Yes
• What is P.O.P. mean for the price of a mutual fund?
• Public Offering Price
• Mr. George’s advice:
• You have one life. Live it.
• Annual Dividend divided by closing price is a formula for what?
• Yield
• What is the relationship between risk and return?
• Low risk, low return. High risk, high return.