A corporation sells Maya a unit that gives her an ownership claim and a vote for directors. What did Maya buy?

Devon lends $5,000 to a company for eight years. The company promises interest and repayment of $5,000 at the end. What instrument does Devon hold?

A fund collects money from many investors and uses it to buy shares and bonds. An investor's claim is best described as a:

Priya owns stock in a company that had a profitable year. Who decides whether the company pays her a dividend?

Luis buys a bond with a $1,000 face value and a 6% annual coupon rate. Ignoring taxes, how much interest does he receive each year?

Aisha buys one share for $40 and later sells it for $53. She received no dividends. Her $13 return is a:

A company promises bondholders $1,000 on June 1, 2034. What is June 1, 2034 called?

A start-up needs permanent capital for a new factory and prefers no required interest payments, even though founders will own less of the company. What should it do?

A mature company needs $10 million for equipment and wants current owners to keep the same ownership percentages. Which financing choice best fits?

Kara owns a diversified mutual fund instead of putting all her money into one airline stock. What does the fund mainly reduce?

Which order is generally least risky to most risky for an investor: a U.S. Treasury bond, a broad stock index fund, and stock in one small company?

A firm borrows through bonds rather than selling stock. What must the firm generally provide bondholders?

What does a stockholder's share represent?

A company earns a profit but chooses to reinvest all of it in new stores. What happens to shareholders' dividends that year?

Noah holds a bond issued by Metro Foods. If Metro Foods' market value rises sharply, which statement is still true?

A mutual fund's prospectus lists its investment objectives, risks, fees, and past performance. Why should an investor read it before buying?

A corporation goes bankrupt and sells its assets. Which investors are generally paid first from what is left?

Lena buys a corporate bond and holds it until the date the company promised to pay her back. What does she receive on that date?

Jamal invests $2,000 in a mutual fund that owns hundreds of securities. Who chooses which securities the fund buys and sells?

A company plans a project expected to produce cash over 20 years. It wants investors to lend money now and receive fixed interest payments. Which method fits?

Elena bought a mutual fund because it holds both stocks and bonds. Compared with buying only one company's stock, what is a likely advantage?

Which investment usually offers the greatest potential return and the greatest risk among these choices?

A bond's face value is best defined as the:

Mina's stock rose from $25 to $31, but she has not sold it. What has occurred so far?

A firm issues 1 million new shares. What is the most direct effect on the firm's financing?

A mutual fund holds 300 companies, but several of them decline at once during a recession. Which statement is accurate?

Ana holds a bond with a fixed 4% coupon rate. Interest rates on new bonds then rise to 6%. What usually happens to the market price of Ana's bond?

A company compares issuing bonds with issuing new stock to pay for expansion. What is a main drawback of issuing bonds?

An investor wants a higher expected return than Treasury bonds pay. What must she generally accept in exchange?

A stock investor receives $0.80 per share from the company without selling any shares. What is this payment called?