Chapter 19

2. loan guaranteed only by a promise to repay it
6. act of not repaying borrowed money
9. a situation in which the outcome is not certain, but the probabilities can be estimated
12. most basic form of corporate ownership, generally with one vote per share for stockholders
14. the price of credit to a borrower
16. strategy of holding different investments to minimize risk
18. the dollars that become available for investors to use when others save
20. U.S. government obligation with a maturity of a few days to 52 weeks
21. monthly, quarterly, semiannual, or annual prices paid for an insurance policy
22. loan that is backed up by collateral
23. people who own a share or shares of stock in a corporation; same as shareholders
24. persons or institutions to whom money is owed

1. an amount you pay before the insurance company pays
3. person who buys or sells securities for investors
4. a type of investment, often tax exempt, issued by state and local governments; known as munis
5. U.S. government obligation with a maturity of 2 to 10 years
7. group that channels savings to investors; includes banks, insurance companies, savings and loan associations, credit unions
8. life of a bond, length of time funds are borrowed
10. certificates of ownership in a corporation; common or preferred stock
11. form of stock with no voting privileges; has a higher claim on corporate income and assets than does common stock
13. the transfer of money from households to businesses and government through investments and loans
15. checks paid to stockholders, usually quarterly, representing portion of corporate profits
17. company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
19. something of value that a borrower lets the lender claim if a loan is not repaid