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Ch. 11 - Financial Markets

Mr. Kenzor
Horizontales
An index of 30 representative stocks used to monitor price changes in the overall stock market
Principal of a bond or total amount borrowed
Stated interest on a corporate, municipal, or government bond
Period during which stock market prices move down for several months or years in a row
Futures contract giving investors the option to cancel a contract to sell commodities, equities, or financial assets
Network of savers, investors, and financial institutions that work together to transfer savings to investment uses
Firm that makes loans directly to consumers and specializes in buying installment contracts from merchants who sell on credit
Institutions that channel savings to investors
Futures contract giving investors the option to cancel a contract to buy commodities, equities, or financial assets
The length of time you need to work at the company before you can take the employer's matching contributions with you
Regular allowance for someone who has worked a certain number of years, reached a certain age, or who has suffered from an injury
A situation in which the outcome is not certain, but the probabilities can be estimated
Period during which stock market prices move up for several months or years in a row
Something, such as money, given or received as an equivalent for goods or services, injury, debt, or high risk
Verticales
Exceptionally risky bond with a S&P rating of BB or lower that carries a high rate of return as compensation for the higher possibility of non-payment
Life of a bond or length of time funds are borrowed
Formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
Low-denomination, non-transferable bonds issued by the federal government, usually through payroll savings plans
Stocks or documents that represent a claim on the income and property of the borrower
Fund that collects and invests income until payments are made to eligible recipients
The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk
Monthly, quarterly, semiannual, or annual price paid for an insurance policy
Stocks that represent ownership shares in corporations
Market in which a transaction is made immediately at the prevailing price
Company that sells shares of a portfolio of securities
Retirement account in the form of a long-term deposit, with annual contribution not taxed until withdrawn during retirement
Argument that stocks are always priced about right, and that bargains are hard to find because they are closely watched by so many investors