Download Unit 5

Consumer Education
Name: _________________________________
Mr. Lemke
Period: _____________
Investing in Corporations – 9.2 & 9.3
Directions: Match each description in the left column with the correct term from the right column. Write
the letter of the term in the space provided. Do not use any term more than once.
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1. a business that accepts deposits from many
people to invest in various ways
2. corporate bonds that are high-risk
investments; also known as high-yield bonds
3. a voting share of ownership in a corporation
for which the dividend varies, as determined
by the corporation’s board of directors
4. investors who own a corporation because
they own its stock
5. a company that specializes in helping people
buy and sell stocks and bonds
6. selection of stocks or bonds that a mutual
fund purchases
7. bonds sold by corporations to finance
business activities, which usually pay a fixed
interest rate and are paid after a specific
term
8. a location where orders to buy or sell stock
are sent and carried out
9. an electronic stock-trading system that
links brokerage firms
10. a person who handles the transfer of stocks
and bonds between buyer and seller
11. a sales fee that you pay when you invest in a
mutual fund
12. investing roughly equal amounts of money
at regular intervals
13. a unit of ownership in a corporation that
you can buy
14. a non-voting share of ownership in a
corporation that pays a fixed dividend
A. Corporate stock
B. Stockholders
C. Stockbroker
D. Brokerage firm
E. Stock exchange
F. NASDAQ
G. Dollar cost averaging
H. Preferred stock
I. Common stock
J. Corporate bonds
K. Junk bonds
L. Mutual fund
M. Portfolio
N. Load
Create your own mutual fund. Think of the name of the corporation that produces ten products or
services that you use on a daily basis. This can be anything from the manufacturer of your toothpaste, to
your cell phone service company, or the manufacturer of the car you drive. Using an Internet browser,
find the stock symbol and the current market price of a single share of each company’s stock. Next
week, we will again find the market price of each corporation and see if your mutual fund made or lost
money!
Name of Corporation
Stock Symbol
Market Price 10/27/16
Market Price 10/28/16
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Fund Total Value
XXXXXXXXXXXXXXXXXX
Change in Fund Value
XXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXX
If a consumer invested $200.00 in your mutual fund (on the first day of this assignment), how many
units of your fund would they receive? ($200.00 ÷ Fund Total Value)
___________________ units
On the second day of this assignment, what is now the value of the units purchased yesterday?
________________ units X _____________________(today’s fund value) - $_______________________