Basic Investment Types

Please choose the most appropriate answer for each sentence.
  • 1

    Common shareholders have the right to elect directors, to vote on certain corporate matters, and to share in any ..... assets of the company if it is wound up.

  • 2

    Common shareholders are the last to claim assets in cases of ......

  • 3

    Preferred shareholders may have no voting rights, but special features on redemption or ..... of preferred shares into common shares exist in many cases.

  • 4

    U.S. Savings Bonds are backed by the general credit and taxation powers of the federal government, so there is virtually no risk of ......

  • 5

    A bond is a loan by an investor to the government or a company, which generally promises to pay a specified rate of interest and to repay a certain amount, the ..... value of the bond, at maturity.

  • 6

    Certificates of Deposit (CDs) are short-term, interest-bearing savings certificates issued by banks or brokers, bearing a maturity date and a specified interest rate; they can be issued in any ......

  • 7

    Money-market mutual funds (MMMF) pool money from large numbers of investors and use it to buy short-term investments, such as T-Bills and commercial ......

  • 8

    The returns on mutual funds depend on the fund's investment objectives, described in its ....., and its success in achieving them.

  • 9

    ..... funds are much like mutual funds, but shares are not issued or redeemed on an ongoing basis; a set number of shares are issued and then listed on an exchange for trade among investors.

  • 10

    Options give the holder the right to buy ('call' option) or sell ('.....' option) a security at a specific price for a specific period of time.

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