1 Income stocks pay Income stocks pay dividends

Income stocks pay dividends at regular times during the year.

2. Growth stocks can be profitable because they

2. Growth stocks can be profitable because they reinvest earnings in the business and

3. Investors experience capital gains when they

3. Investors experience capital gains when they sell stock for more than they paid

4. Investors suffer capital losses when they

4. Investors suffer capital losses when they sell stock for less than they paid

5. Stocks are riskier than bonds because

5. Stocks are riskier than bonds because dividends depend on profits, and if a

6. Blue chip stocks are traded on the New York Stock Exchange *Blue chip

7. A put option is the option to sell shares of stock at a

8. During a bear market, investors sell because

8. During a bear market, investors sell because they expect lower profits over time.

Slides: 17

Download presentation

1. Income stocks pay

Income stocks pay dividends at regular times during the year.

2. Growth stocks can be profitable because they

2. Growth stocks can be profitable because they reinvest earnings in the business and increase in value over time.

3. Investors experience capital gains when they

3. Investors experience capital gains when they sell stock for more than they paid for it.

4. Investors suffer capital losses when they

4. Investors suffer capital losses when they sell stock for less than they paid for it.

5. Stocks are riskier than bonds because

5. Stocks are riskier than bonds because dividends depend on profits, and if a large firm goes bankrupt, stockholders receive dividends only if there is money left over after bondholders are paid.

6. Blue chip stocks are traded on the

6. Blue chip stocks are traded on the New York Stock Exchange *Blue chip companies are the largest and bestknown companies listed on the NYSE.

7. A put option is the option to

7. A put option is the option to sell shares of stock at a particular price at a specified time in the future. *Call option is. . . ?

8. During a bear market, investors sell because

8. During a bear market, investors sell because they expect lower profits over time. -when the stock market falls for a period of time *During a bull market the stock market rises steadily over a period of time and investors expect an increase in profits so they. . . ?