Key Terms Chapter 21 Stocks, Bonds, & Mutual Funds

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Key Terms for Chapter 21: Stocks, Bonds, & Mutual Funds
Kyra Louthan
Flashcards by Kyra Louthan, updated about 2 months ago
Kyra Louthan
Created by Kyra Louthan about 2 months ago
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Question Answer
Bond Yield total annual interest divided by total cost
Bonds bond selling for more than face value
Cash Dividend cash distribution of company's profit to owners of stock
Common Stocks units of ownership called shares
Cumulative Preferred Stock Holders 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
Discont amount bond sells below
Dividends distribution of company's profit in cash or stock to owners of stock
Dividends in Arrears dividends that accumulate when a company fails to pay cumulative dividends to preferred stockholders
Earnings Per Share (EPS) annual earnings divided by total number of shares outstanding
Mutual Funds investors buy shares in the fund's portfolio (group of stocks and/or bonds)
Net 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.
Odd Lot less than 100 shares
Price Earnings Ratio (PE Ratio) closing price per share of stock divided by earnings per share
Preferred Stock Type of stock that has a preference regarding a corporations profits and assets
Premium periodic payments that one makes for various kinds of insurance protection
Round Lot multiple of 100 shares
Stock Certificate evidence of ownership in a corporation
Stock Yield dividend per share divided by the closing price per share
Stockbrokers one who owns stock in a company
Stockholders one who owns stock in a company
Stocks ownership shares in the company sold to buyers, who receive stock certificates
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