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Stocks and Bonds
Vocabulary

1 .       Any incorporated company can issue stock and each ______ of stock represents partial ownership of the corporation. 

  page
  dividend
  share
  recall


2 .       At the time the company issues the stock, each share has a specific value called the face value or the _____ value. 

  gross
  par
  net
  estimated


3 .       A person buying stock receives a certificate of ownership called a ____ ___. 

  ceritfied bond
  writ of payment
  promissory note
  stock ceritficate


4 .       Owners of _______ stock receive certain preferential financial benefits over common stockholders. 

  preferred
  common
  ordinary
  promissory


5 .       The actual buying and selling of shares of stock is done by a person called a _________. 

  teller
  floor representative
  stockbroker
  buyer


6 .       Owners of _______ preferred stock can receive additional dividends if the company does well. 

  non-participating
  convertable
  participating
  cumulative


7 .       _________ preferred stock allows the stock to be exchanged for a certain number of shares of common stock later. 

  Non-convertible
  Convertible
  Cumulative
  Participating


8 .       A corporation's board of directors can vote to reinvest any profits into the business or can declare a ________ with some or all of the profits. 

  kickback
  credit
  dividend
  forfeit


9 .       The __________ ratio is a measure of the price of a share of stock compared with its annual per-share earnings. 

  net
  PE
  profit
  dividend


10 .       A group of 100 shares or a multiple of 100 shares is called a(n) ________ lot. 

  complete
  gross
  round
  odd


11 .       A group of less than 100 shares of stock is called a(n)___ lot. 

  mixed
  rough
  uneven
  odd


12 .       A _______ is a promise to repay money at a specified later date and in the meantime to pay interest annually. 

  bond
  share
  stock
  round lot


13 .       The date of repayment for a bond is called the _________ date. 

  due
  final
  initial
  maturity


14 .       Bonds of businesses that are bankrupt or in financial difficulty are called ______ bonds. 

  junk
  corporate
  municipal
  registered


15 .       Bonds issued by state and local governments are called _______ bonds. 

  corporate
  treasury
  coupon
  municipal


16 .       Bonds issued by the federal government are called _____ bonds. 

  municipal
  treasury
  junk
  corporate


17 .       ________ bonds have a provision that allows them to be converted to stock. 

  Convertible
  Recallable
  Premium
  Registered


18 .       _________ bonds allow the corporation to repurchase the bonds before the maturity date. 

  Convertible
  Coupon
  Recallable
  Junk


19 .       A bond for which the price rises above the par value is sold at a __________. 

  discount
  coupon
  registered
  premium






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