Chapter 19

2. an amount you pay before the insurance company pays
3. loan guaranteed only by a promise to repay it
4. form of stock with no voting privileges; has a higher claim on corporate income and assets than does common stock
11. strategy of holding different investments to minimize risk
15. person who buys or sells securities for investors
16. people who own a share or shares of stock in a corporation; same as shareholders
17. monthly, quarterly, semiannual, or annual prices paid for an insurance policy
19. a type of investment, often tax exempt, issued by state and local governments; known as munis
21. U.S. government obligation with a maturity of a few days to 52 weeks
22. persons or institutions to whom money is owed

1. U.S. government obligation with a maturity of 2 to 10 years
5. group that channels savings to investors; includes banks, insurance companies, savings and loan associations, credit unions
6. most basic form of corporate ownership, generally with one vote per share for stockholders
7. the transfer of money from households to businesses and government through investments and loans
8. life of a bond, length of time funds are borrowed
9. act of not repaying borrowed money
10. checks paid to stockholders, usually quarterly, representing portion of corporate profits
12. loan that is backed up by collateral
13. the price of credit to a borrower
14. company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
16. the dollars that become available for investors to use when others save
18. certificates of ownership in a corporation; common or preferred stock
20. something of value that a borrower lets the lender claim if a loan is not repaid
23. a situation in which the outcome is not certain, but the probabilities can be estimated