The Language of Financial Markets Quiz Bowl Game Board

SLIDE 1.1

The Language of Financial Markets Quiz Bowl Game Board

Invest in This

Potent Investment

s

Index or 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.

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SLIDE 1.3

The correct answer is…

Bond

10RETURN TO GAME BOARD

SLIDE 1.4

Invest in This:

An ownership share or shares in a corporation.

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SLIDE 1.5


Common Stock


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.

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SLIDE 1.7


Mutual Fund


SLIDE 1.8

Invest in This:

A stock that often pays no dividend, but the stockholder gains if the price of the stock increases.

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SLIDE 1.9


Growth Stock


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.

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SLIDE 1.11


Preferred Stock


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.

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SLIDE 1.13


Buying on Margin


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.

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SLIDE 1.15


Hedge Fund


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.

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SLIDE 1.17


Option


SLIDE 1.18

Potent Investments:

The degree of uncertainty associated with the return on an asset or the value of an asset.

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SLIDE 1.19


Risk


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.

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SLIDE 1.21


Short Selling


SLIDE 1.22

Index or Exchange:

Stands for American Stock Exchange, formerly an

independent market but now part of the New York Stock Exchange.

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SLIDE 1.23


AMEX


SLIDE 1.24

Index or Exchange:

The most commonly known stock-market indicator and is an index of

thirty large and well-known companies.

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SLIDE 1.25


Dow Jones Industrial Average


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!.

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SLIDE 1.27


NASDAQ Stock Market


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.

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SLIDE 1.29


New York Stock Exchange


SLIDE 1.30

Index or Exchange:

Stands for the Standard and Poor’s 500 Stock Index. The index

includes 500 large and varied stocks.

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SLIDE 1.31


S&P 500 Stock Index


SLIDE 1.32

Earn It:

A profit realized from the sale of property, stocks or other

investments.

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SLIDE 1.33


Capital Gain


SLIDE 1.34

Earn It:

A percentage of a stock trade (buy or sell) paid to a stockbroker.

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SLIDE 1.35


Commission


SLIDE 1.36

Earn It:

A share of a company’s profits paid to shareholders.

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SLIDE 1.37


Dividend


SLIDE 1.38

Earn It:

The market value of anything being offered for sale.

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SLIDE 1.39


Price


SLIDE 1.40

Earn It:

Money earned from an investment. The money could be profits,

interest, appreciation or a combination.

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SLIDE 1.41


Return


SLIDE 1.42

Who Am I?

A professional who buys and sells stocks for individuals and institutional customers.

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SLIDE 1.43


Broker


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.

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SLIDE 1.45


Dealer


SLIDE 1.46

Who Am I?

An organization (an insurance company or pension fund, for

example) that invests in the stock market.

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SLIDE 1.47


Institutional Investor


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.

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SLIDE 1.49


Investment Banker


SLIDE 1.50

Who Am I?

A person who owns stock; sometimes called a shareholder.

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SLIDE 1.51


Stockholder


SLIDE 1.52

Financial Markets Potpourri

A stock that pays a regular dividend.

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SLIDE 1.53


Income Stock


SLIDE 1.54


The first sale of stock by a private company to the public.

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SLIDE 1.55


Initial Public Offering


SLIDE 1.56


The ease with which savings or investments can be turned into

cash.

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SLIDE 1.57


Liquidity


SLIDE 1.58


A network of securities dealers connected by a computer network

to buy and sell stock without a centralized trading floor.

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SLIDE 1.59


Over-the-Counter Market


SLIDE 1.60


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.

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SLIDE 1.61


Stock split


The Language of Financial Markets Quiz Bowl Game Board

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