FINANCE AND INVESTING UNIT 1 REVIEW
EXAM QUESTIONS WITH 100% CORRECT
ANSWERS
Market
a group of buyers and sellers of a particular good or service
NYSE
Physical floor where stocks are bought and sold
NASDAQ
A nationwide electronic system that links dealers across the nation so that they can buy and sell
securities electronically.
IPO
A company's first sale of stock to the public
SEC
The agency of the U.S. government that oversees U.S. financial markets
SIPC
Protects investment accounts from fraud or failure of the brokerage firm
Sole Proprietorship
A business owned by one person
Partnerhsip
Similar to sole proprietorships, except that this legal structure allows for more than one owner.
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for
its debts
capital gain
selling stock for more than you paid for it
Dividends
Company's share profits to the shareholders based on the corporation's performance.
common stock
EXAM QUESTIONS WITH 100% CORRECT
ANSWERS
Market
a group of buyers and sellers of a particular good or service
NYSE
Physical floor where stocks are bought and sold
NASDAQ
A nationwide electronic system that links dealers across the nation so that they can buy and sell
securities electronically.
IPO
A company's first sale of stock to the public
SEC
The agency of the U.S. government that oversees U.S. financial markets
SIPC
Protects investment accounts from fraud or failure of the brokerage firm
Sole Proprietorship
A business owned by one person
Partnerhsip
Similar to sole proprietorships, except that this legal structure allows for more than one owner.
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for
its debts
capital gain
selling stock for more than you paid for it
Dividends
Company's share profits to the shareholders based on the corporation's performance.
common stock
