Politics and Economics Vocabulary 2 Mr. Thacker

Section 3: Investing and Stocks

Identify and/or Explain

1. Bonds

2. Coupon rate

3. Maturity

4. Par value

5. “holder” and “issuer”

6. Yield

7. Standard & Poor’s and Moody’s

8. Bond rating

9. Savings bonds

10. Treasury bonds & Treasury bills

11. “Full faith and credit”

12. Municipal bonds

13. Tax-exempt

14. Corporate bonds

15. Securities and Exchange Commission

16. Junk bonds

17. Certificates and Deposit

18. Money market mutual funds

19. Capital markets

20. Money markets

21. Primary markets

22. Secondary markets

Questions

1. Explain the basic components of a bond and give an example. (12)

2. List and explain the advantages and disadvantages to the Issuer