Professional Documents
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4939X_13_ch12_p119-126.qxd
2/5/09
6:42 PM
Page 119
Name
12
Investing
in Stocks
section:
vocabulary
Example: A(n) _________ is the use of money to earn the best possible return
with the least amount of risk.
1. A public _________ issues stock that may be traded openly on the stock
markets or over-the-counter.
2. When a company is profitable, the stockholders often receive a
distribution of money called _________.
3. Common stockholders vote for members of the _________.
4. A(n) _________ is an increase in the number of outstanding shares
of a stock.
5. _________ means using dividends previously earned on stock to buy
more shares.
6. Stocks that pay high dividends over time are called _________ stocks.
7. Stocks in companies that reinvest profits, rather than pay dividends,
are called _________ stocks.
8. A(n) _________ is a benchmark that stock investors use to judge
investment performance.
9. Stocks of large, well-established companies are called _________ stocks.
10. A(n) _________ stock is one that remains stable during an
economic decline.
11. _________ stocks do well in a good economy but poorly in a bad one.
12. The _________ is an assigned dollar value that is printed on a stock
certificate.
13. When you buy stock, you pay _________ value.
14. A corporations after-tax earnings divided by the number of common
stock shares outstanding is _________.
15. A(n) _________ market is characterized by rising stock prices
and optimism.
16. A(n) _________ market is characterized by the selling of stocks
and pessimism.
17. A marketplace where brokers buy and sell securities is called
a(n) _________.
18. Stocks are bought and sold by _________.
19. Stock exchanges are _________ markets where buyers and sellers come
together to buy and sell securities.
20. Borrowing money to buy stock is called _________.
investment
0. _______________________
corporation
1. _______________________
dividends
2. _______________________
board of directors
3. _______________________
stock split
4. _______________________
Dividend reinvestment
5. _______________________
income
6. _______________________
growth
7. _______________________
stock index
8. _______________________
blue chip
9. _______________________
10.
11.
defensive
_______________________
Cyclical
_______________________
par value
12. _______________________
market
13. _______________________
earnings per share
14. _______________________
bull
15. _______________________
bear
16. _______________________
securities exchange
17. _______________________
floor brokers
18. _______________________
19.
20.
auction
_______________________
buying on margin
_______________________
(leverage)
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4939X_13_ch12_p119-126.qxd
Section 2
2/5/09
6:42 PM
Page 120
Review Questions
section:
review questions
After each of the following statements, circle T for a true statement or F for a false statement.
For
Scoring
Answers
F
1. _________
T
2. _________
T
3. _________
T
T
T
T
T
T
T
F
F
F
F
F
F
F
4.
5.
6.
7.
8.
9.
10.
T
_________
F
_________
T
_________
F
_________
T
_________
F
_________
F
_________
On the line at the right of each sentence, print the letter that represents the word or group of words
correctly completing the sentence or answering the question.
120
c
____________
1. _________
d
____________
2. _________
c
____________
3. _________
c
____________
4. _________
a
____________
5. _________
a
____________
6. _________
c
____________
7. _________
c
____________
8. _________