Chapter 23 or 36 Stocks, Bonds, Futures and Options: Pre - Class & In - Class Activities Packet Name/LD. Number. Section: Date: Part 2A. Matching: Match the Key terms in Column "A" with the definitions in Column "B" by writing the block letter of your choice from Column "B" in the space provided under "A" and match the definitions in column "B" with the meanings or examples or facts in column "C" by writing the lower case letter of your choice in the space provided under column B". Column "A" Column "B" Column "C" 1. Trade Stock A. Dollar amount specified on a bond, the total amount the issuer a. Goldman Sachs, JP Morgan & Co., Bardays of the bond will repay to the buyer of the bond Capital, Deutsche Bank, Credit Suisse. UBS b. A legally binding agreement to buy or sell a 2. Dow Jones B. A contract that gives the owner the right, but not the obligation, commodity, a Inancial Instrument , a stock at a Industrial to buy or sell shares of a stock al a spected price on or before a designated future date at a price agreed upon. Average (DJIA) specified date. e. The price of a bond when it is first issued. 3. Initial Public C. An agreement to buy or sell a specific amount of something ta d. The return on investment on a stock is equal to commodity a currency, a financial instrument) at an agreed on Offering [IPO) dividend divided by the closing price of the stock. price on a stipulated future date. e. It is a distribution of a portion of a company's 4. Investment D. A frm that acts as an intermediary between the company that earnings to share holders. Bank Isues the stock and the public that wishes to buy it. [ A financial security or instrument issued by companies. govemments agencies and has three 5. Dividend E An IOU, of a promise to pay major components: face [par) value, maturity date, F. The amount equal to the annual coupon payment divided by and coupon rate. g. An agreement that gives one of The 6. Bond the price paid for the bond. counterparties a right and the other an obligation to buy or sell. This is part of a class of securities G. A claim on the assets of a corporation that gives the purchaser called "derivatives" because they derive their a share of ownership in the corporation. value from the worth of an underlying investment. 7. Face Value H. A share of the profits of a corporation distributed to h. A stock index fund that was devised by Charles (Par Value) Dow on May 26, 1896, to convey information stockholders about what was happening in the stock market &. Yield based on 11 stocks at that time. L A company's first offering of stock to the public. 9. Futures i. It is also known as "Going Public", a means for Contract J. The most popular, widely cited indicator of day-to-day stock a company to raise money by issuing equity for the market activity, a weighted average of 30 widely traded stocks on find lime to the public 10. Option the New York Stock Exchange It is also known as "Equity"