Stocks and Bonds

A loan agreement between the issuer and an investor. The issuer is obligated to pay a specified amount of money at specified future dates.

• Stock

• Bond

• Dividend

• Market Capitalization

What is a share of ownership in a particular company?

• Bond

• Dividend

• Diversification

• Stocks

A piece of the company’s profit that it pays out to each shareholder every three months.

• Stock

• Bond

• Dividend

• Diversification

The estimate of the total value of the company.

• Market Capitilization

• Bonds

• Dividends

• Stocks

How is Market Capitalization determined?

• Per stock value multiplied by the number of shares you bought.

• Total number of shares multiplied by the per stock value.

• Total number of shares multiplied by how much money the company made last quarter.

• The number of shares you personally bought multiplied by how much money the company made two quarters ago.

• Total number of shares divided by the per stock value.

The practice of holding a large number of different stocks so that increases in some can offset unexpected declines in others.

• Bonds

• Diversification

• Stocks

• Dividends

What factors can influence the price of stocks?

• Political Climate

• State of Economy

• Demand of Good/Service

• Future Expectations

• Total Number of Shares