Flashcards
Key Terms Chapter 21 Stocks, Bonds, & Mutual Funds
Cards in this deck (21)
- 1Bond Yieldtotal annual interest divided by total cost
- 2Bondsbond selling for more than face value
- 3Cash Dividendcash distribution of company's profit to owners of stock
- 4Common Stocksunits of ownership called shares
- 5Cumulative Preferred StockHolders of preferred stock must receive current years dividends and any dividends in arrears before any dividends are paid out to the holders of common stock
- 6Discontamount bond sells below
- 7Dividendsdistribution of company's profit in cash or stock to owners of stock
- 8Dividends in Arrearsdividends that accumulate when a company fails to pay cumulative dividends to preferred stockholders
- 9Earnings Per Share (EPS)annual earnings divided by total number of shares outstanding
- 10Mutual Fundsinvestors buy shares in the fund's portfolio (group of stocks and/or bonds)
- 11Net Asset Value (NAV)the dollar value of one mutual fund share; calculated by subtracting current liabilities for current market value of funds investments and dividing this by number of shares outstanding.
- 12Odd Lotless than 100 shares
- 13Price Earnings Ratio (PE Ratio)closing price per share of stock divided by earnings per share
- 14Preferred StockType of stock that has a preference regarding a corporations profits and assets
- 15Premiumperiodic payments that one makes for various kinds of insurance protection
- 16Round Lotmultiple of 100 shares
- 17Stock Certificateevidence of ownership in a corporation
- 18Stock Yielddividend per share divided by the closing price per share
- 19Stockbrokersone who owns stock in a company
- 20Stockholdersone who owns stock in a company
- 21Stocksownership shares in the company sold to buyers, who receive stock certificates
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- Key Terms for Chapter 21: Stocks, Bonds, & Mutual Funds
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- Kyra Louthan
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