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Ch. 11 Vocabulary

Across
A contract that gives the right, but no the obligation, to buy or sell
The market for buying and selling long-term assets
The annual rate of return
Consists of institutions that allows transfer of funds between saver and investors
A contract to buy or sell a commodity at a specified future date and price
An agent who is paid a commission for buying and selling securities on behalf of customers
The possibility for loss on an investment
A financial institution that collects funds from savers then invests these funds in loans and other assets
The interest rate a bondholder receives every year until bond matures
The use of income today that allows for a future benefit
Considered high risk but has the potential for high yields
The market where assets are resold
Income not used for consumption immediately
When stock prices steadily decline, is called...
Down
A measure of the change in prices for a specific set of stocks
A pool of money managed by an investment company that gathers money from investors and purchases a range of assets
Share of ownership in a corporation, giving holders voting rights and share of profits
The practice of distributing investments among different assets to maximize return and limit risk
The amount that the bond issuer promises to pay the buyer at maturity
Gains made form the sale of securities
A financial goal that an investor uses to determine if an investment is appropiate
Share of ownership in a corporation giving holders a share of profits but no voting rights
The date when the bond is due to be repaid
The profit or loss made on an investment