Biotechnology is an example of an index fund.

Mid-cap funds include stocks of companies with total capitalization of $2 billion to $10 billion.

Government bonds have a high risk default.

Index funds may have lower management fees.

When a company calls a bond, it usually owes bondholders a premium.

A bond price quotation is the percentage of the bond’s face value used to determine its current market value.

A sinking fund is losing money.

Series I bonds are inflation-indexed.

A mortgage bond may be traded for shares of common stock.

To pay for a new school, a local government may issue a municipal bond.

An investor can trade a bond for shares of the corporate stock if the bond is a ____.

To reach maturity, Treasury bills take between ____.

A typical corporate bond states all of the following facts about the bond EXCEPT ____.

The investment that offers the highest rate of interest is ____.

What is the formula for computing the approximate market value of a bond?

Which of the following is NOT a source of information for mutual funds?

Diversification is a key reason for buying a ____.

Only a fixed number of shares are issued for a(n) ____.

Which Standard & Poor’s rating designates the riskiest investment?

A zero-coupon bond differs from other bonds because ____.

Definition: the earnings a mutual fund pays to shareholders

Definition: a bond that is registered in the owner’s name by the issuing company

Definition: the profit that results from an increase in value when an investor sells shares in a mutual fund

Definition: allows investors to adjust their investments conveniently to achieve a different financial objective

Definition: a mutual fund in which you pay a commission every time you buy or sell shares

Definition: has an unlimited number of shares that are issued and redeemed by an investment company at the request of investors

Definition: helps pay for marketing and advertising of a mutual fund

Definition: the rate of return earned by an investor who holds a bond for a certain amount of time

Definition: a bond that is not registered in the investor’s name

Definition: backed by the full faith and credit of the government that issued it