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Financial Literacy
“The Language of the Stock Market” Worksheet – Part 1
Directions: Complete while viewing “The Language of the Stock Market – Part 1” PowerPoint presentation.
1.
The _________________ ___________________ is the core of America’s economic system.
2.
________________ is a share of _________________ in the assets and earnings of a _______________.
3.
A ________________ is a type of ________________ a company issues to investors for a specified
amount of time.
4.
Two reasons companies like to issue stock:
a. Company does not have to ____________ the money.
b. Paying _______________ is optional.
5.
Dividends are _____________________ of earnings paid to ___________________________.
6.
What is the relationship between risk and return?
Higher __________ of return
7.
=
greater __________
Two types of stock:
a.
b.
8.
Common Stock:
a. Most basic form of ______________________
b. One ____________ per share owned determines company’s board of ________________
9.
Ways that common stock value changes:
a. Dollar value __________________ or ___________________
b. ____________________ ____________________ occurs — shares owned are divided into
larger number of shares (for example, 1 share becomes 2 shares)
c. A ___________________ of two companies
d. __________________ are paid
10. Preferred Stock:
a. Pay fixed dividends and have __________________ over common stock
b. _____________ risk / no ___________________ rights
c. Dividends are a percentage of the __________ value of the stock
11. Seven basic stock classifications:
a.
e.
b.
f.
c.
g.
d.
12. Growth Stock: New companies ____________________ product lines
a. Usually do not pay _________________
b. Beta is ___________ or higher
c.
Two examples: ______________________ ______________________
13. Income Stock: Company retains small portion of ____________________
a. Steady stream of _________________ such as ____________________ companies
b. Beta less than _____________
14. Value Stock: Have a ___________ market price considering historical ____________________ records
and value of __________________.
a. Viewed as investment ____________________.
b. Previous examples: ___________________ _____________________
15. Cyclical Stock: Influenced by changes in ____________________ business cycle.
a. Companies in major ______________________ _____________________ industries
b. Examples: ___________________ _____________________ ____________________
c. Beta is generally ______________
16. Countercyclical Stock: Products are always in __________________
a. Good for investors who want ____________________
b. Examples: ______________________ _________________________
c. Beta is ______________ or below, even negative
17. Speculative Stock: Very high-_____________ stocks
a. Examples: ____________________ ________________________
b. Beta is ______________
18. Blue Chip Stock: Nationally-recognized companies with long record of _______________,
_____________ payments, and a good reputation of ____________________.
a. Less _______________
b. Grow at a _______________________ rate
c. Examples: ______________________ _____________________ ___________________