Investing in Stocks and Bonds
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Questions and Answers

Match every cipher with a letter to make a meaningful business English text:

1 = management 2 = capital 3 = bills 4 = loans 5 = product 6 = raise 7 = granting

Where are stocks bought and sold?

  • From company employees, managers or members of the Board of Directors
  • Over the phone, through a 24/7 hotline
  • Through stock exchanges, with the assistance of a licensed stockbroker, brokerage firm, and/or brokerage website (correct)
  • Through companies

What is a bond?

  • A short-term investment
  • Essentially the same thing as a stock
  • A piece of debt purchased and compensated for through interest paid to purchasers (correct)
  • A publicly traded piece of a company

How large are dividends, typically?

<p>It depends, but usually on a very small percentage of total investment (B)</p> Signup and view all the answers

What is one key benefit of purchasing a bond?

<p>Not having to worry about a company's performance, in relation to being paid (D)</p> Signup and view all the answers

Why is it a good idea to invest in stocks and bonds?

<p>All of the above (D)</p> Signup and view all the answers

Match the lettered terms to the numbers to have a meaningful English text related to Banking and the Stock Market.

<p>1 = savings accounts 2 = account 3 = deposit slip 4 = passbook 5 = withdrawal 6 = bills of exchange</p> Signup and view all the answers

Flashcards

Finance

The function of managing money, including activities like investing, borrowing, lending, budgeting, saving, and forecasting.

Capital

Money or assets available for use to generate further income or wealth.

Bills

Written statements outlining money owed for goods or services.

Raise

To accumulate or obtain something, often refers to funds or support.

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Ownership

A share representing a piece of ownership in a company.

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Management

Overseeing and directing resources to achieve organizational goals.

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Long-term capital

Loans provided for an extended period. (over a year)

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Product

A tangible good or service that is produced and offered to customers.

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Investments

Financial tools that investors use to increase their wealth.

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Investors

Individuals or entities willing to risk capital to make financial decisions.

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Stocks

Represent ownership in a publicly traded company.

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Dividends

A portion of a company's profit paid out to stockholders.

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Bonds

Debt instruments issued by corporations or governments.

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Municipal Bonds

Bonds issued by state or local governments.

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Stock Exchange

A marketplace where stocks are bought and sold.

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Stockbroker

A professional who executes buy and sell orders for stocks on behalf of clients.

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Price Increase

The increase in the value of an asset over time.

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Scheduled payments

A fixed sum paid to someone at regular intervals

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Pieces of debt

Pieces of debt where interest is exchanged.

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cash for issuers

Cash for the issuers boosts investors.

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Bank Account

An arrangement with a bank to hold and manage money.

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Savings Accounts

Accounts designed for storing money, often with interest earnings.

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Deposit Slip

A form used when depositing money into an account.

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Current accounts

Accounts that allow frequent transactions and payments

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Withdrawal conditions

These set of procedures for using your savings.

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Issuing

The process of providing or offering something for official use.

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Passbook

A formal, printed record of bank transactions kept by the depositor.

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Bills of exchange

A document guaranteeing payment to a specific party at a future date.

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Withdrawal

The act of taking money out of a bank account

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company

A business is an organization.

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Study Notes

  • Finance involves the management of money.
  • Businesses need enough capital to pay their bills.
  • For-profit businesses seek extra capital to expand operations.
  • Businesses sometimes raise long-term capital by selling products in the company.
  • Common financial activities include monitoring and collecting on credit.
  • Financial divisions must establish a good working relationship with a bank for loans.

Investing in Stocks and Bonds

  • Stocks, bonds, and investments are useful financial tools.
  • Stocks are pieces of ownership of publicly traded companies.
  • Clients purchase stocks with the hope of turning a profit.
  • Research into a company's revenues and business model is important before investing in stocks.
  • You can purchase stocks through the stock exchange, a stockbroker, brokerage firm, or licensed trading website.
  • Shares of a company are always being bought and sold by individuals.
  • A company's stock price may rise following positive reports and profit data.
  • Individuals who purchased stock at a lower price will benefit from the price increase.
  • Some stocks pay dividends, which are small, scheduled payments to clients.
  • Bonds are pieces of debt purchased by clients in exchange for interest.
  • You can buy government bonds for set prices.
  • Investors can claim more money than initially input after bonds mature.
  • Corporate (company-issued) and municipal bonds provide short-term cash for issuers.
  • Corporate and municipal bonds offer long-term boosts for investors.
  • Bonds cannot be freely backed out of (as stocks can).
  • Penalties may apply to investors who sell before maturation.
  • Smart investing in stocks and bonds can increase one's worth and plan for retirement.
  • Investing can also play an active role in the financial landscape.
  • Stocks are bought and sold through stock exchanges with stockbrokers, brokerage firms, and trading websites.
  • A bond is a piece of debt purchased and compensated for through interest.
  • Dividends typically are a small percentage of total investment.
  • A key benefit of purchasing a bond is not worrying about a company's performance in relation to being paid.
  • Investing in stocks and bonds can increase one's worth, expedite retirement savings, and promote active role in finances.

Banking and Stock Market

  • Two kinds of bank accounts: deposit accounts and current accounts.
  • Deposit accounts are usually an account, opened when a client deposits money.
  • When depositing, a client fills out a deposit slip.
  • The credited amount is entered into their passbook.
  • Conditions may apply to the withdrawal of money from a deposit account.
  • You may need to give advance notice or wait a specific time before withdrawing.
  • Current accounts are common, allowing withdrawal by cheque.
  • Clients can deposit cash, cheques, or bills of exchange into current accounts.
  • Interest is typically not earned on these accounts since money can be withdrawn anytime.

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Description

Learn about stocks, bonds, and investments as financial tools. Stocks represent ownership in publicly traded companies, offering profit potential. Researching a company's revenues and business model is crucial before investing. Stocks can be purchased through stock exchanges, brokers, or licensed trading websites.

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