Chapter 19

3. a situation in which the outcome is not certain, but the probabilities can be estimated
6. checks paid to stockholders, usually quarterly, representing portion of corporate profits
7. an amount you pay before the insurance company pays
9. the transfer of money from households to businesses and government through investments and loans
11. most basic form of corporate ownership, generally with one vote per share for stockholders
15. strategy of holding different investments to minimize risk
16. certificates of ownership in a corporation; common or preferred stock
20. U.S. government obligation with a maturity of 2 to 10 years
21. a type of investment, often tax exempt, issued by state and local governments; known as munis
22. life of a bond, length of time funds are borrowed
23. person who buys or sells securities for investors
24. the dollars that become available for investors to use when others save

1. loan that is backed up by collateral
2. loan guaranteed only by a promise to repay it
4. company that sells shares of a portfolio of securities, e.g., stocks and bonds issued by other companies
5. group that channels savings to investors; includes banks, insurance companies, savings and loan associations, credit unions
8. act of not repaying borrowed money
10. the price of credit to a borrower
12. U.S. government obligation with a maturity of a few days to 52 weeks
13. people who own a share or shares of stock in a corporation; same as shareholders
14. form of stock with no voting privileges; has a higher claim on corporate income and assets than does common stock
17. monthly, quarterly, semiannual, or annual prices paid for an insurance policy
18. persons or institutions to whom money is owed
19. something of value that a borrower lets the lender claim if a loan is not repaid