9. A bond is a a. contract that gives an investor the right to trade a...
9. A bond is a
a. contract that gives an investor the right to trade a specific asset before a certain date.
b. loan made by investors to a company or government.
c. share in the ownership of a company.
d. loan made to consumers.
10. A stock is a
a. share of ownership in a company.
b. loan to a business or government.
c. consumer loan.
d. checking account.
11. To issue stock, a company or entrepreneur works through investment brokers to sell stocks in the
a. bond market.
b. primary market.
c. secondary market.
d. over-the-counter market.
12. Capital markets reduce risk for investors because
a. banks require consumers to complete detailed loan applications.
b. government guarantees earnings for investors who participate in capital markets.
c. various regulators provide investors with a risk index for all stocks and bonds.
d. brokerage firms study and investigate issuers and this information is reflected in the price of the stock or bond.
13. Investors earn money on bonds when the
a. company makes an interest payment.
b. price of the company stock goes up.
c. company pays a dividend.
d. company sells stock.
Homework Answers
9. Ans - b) loan made by investors to a company or government
10. Ans - a) share of ownership in a company
11. Ans - b) primary market.
12. Ans - d) brokerage firms study and investigate issuers and this information is reflected in the price of the stock or bond.
13. Ans - a) company makes an interest payment.
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9. A bond is a
a. contract that gives an investor the right to trade a...
Please tell me how to do this problem and give me the correct answer. Thanks Financial...
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