Module 7 Review

When someone invests in a variety of places to reduce the overall risk of investing.

________ have fixed maturity dates (such as 20 years), at which time the borrower promises to repay the bondholder in full.

A legal document that outlines all of the conditions of a bond.

The process of earning interest on interest that you've already earned.

Agreements by a company to pay specific amounts of money at the maturity dates.

Purchased directly from the company, although these plans may only be offered to employees or other stock owners.

The periodic distribution of profits to investors.

A relatively risk-free bond written by a municipality with the agreement to repay the amount of the bond plus interest on a particular maturity date.

The act of using money to purchase some asset in the hopes of generating more money.

Debt securities that are issued by state or local governments to pay for ongoing products such as roads, schools, and airports.

Work by taking investors' money, investing that collective money in stocks, bonds, and other investments, and managing this portfolio for the investors.

Share characteristics with both common stocks and corporate bonds.

The act of accumulating money.

An account that earns interest on the money deposited, but which cannot be directly accessed for money (such as by writing a check).

High-risk investments with the possibility of high returns in a short period of time.