1 what does nasdaq stand for how does this exchange

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1. What does NASDAQ stand for? How does this exchange work? National Association Securities Dealers Automated Quotations. This exchange is completely electronic allowing for orders to be quickly matched up via computers. 1. What’s a stock split? Why do companies sometimes split their stock? When a company splits its stock 2 for 1 the shareholders receive two shares of stock for each share they own. The current share price is cut in half, so the number of shares increases, the total value of the investment remains the same. A board may decide to split their stock 2 for 1, 3 for 2 or any other ratio they determine is appropriate. The reason that a company splits its stocks is to reduce the price of the stock which will hopefully increase the demand for the stock. 1. What does buying stock on margin mean? When an investor buys on margin they use money borrowed from their broker to purchase stock. 1. What are mutual funds and ETFs? A mutual fund is an investment fund that buys stock and bonds then sells shares in those securities to the public. The pooling of funds allows small investors to invest in a broader selection of stocks and bonds. Most mutual funds are professionally managed. ETFs are similar to mutual funds, but are traded on exchanges like individual stocks and are passively managed. 1. What’s the key benefit to investors in investing in a mutual fund or ETF? The key benefit to investing in a mutual fund or ETF is that the investor gets instant diversification. 2. Common Stock -- The most basic form; holders have the right to vote for the board of directors and share in the profits if dividends are approved. 3. Preferred Stock -- Owners are given preference in the payment of company dividends before common stock dividends are distributed. Preferred stock can also be: 1. Callable 2. Convertible 3. Cumulative 4. 顶顶顶——顶顶顶顶顶顶 , 顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶——顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶 : 顶顶顶顶顶顶顶顶顶顶 DIFFERENT CLASSES of CORPORATE BONDS Corporations can issue two classes of bonds: 1. Unsecured bonds (debenture bonds): not backed by specific collateral. 2. Secured bonds : backed by collateral (land or equipment). Money, Financial Institutions, and the Federal Reserve , 顶顶顶顶 , 顶顶顶顶顶顶顶顶顶 Money Supply -- The amount of money the Federal Reserve makes available for people. The money supply is referred to as:
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FIVE MAJOR PARTS of the FEDERAL RESERVE SYSTEM The Board of Governors The Federal Open Market Committee 12 Federal Reserve Banks 3 Advisory Councils The member banks of the system Managing Personal Finances
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