Stocks and Bonds

Go to the above slide show and using slides 4-21,   complete the following questions:

1 List the goals of the banking system


2  Define :


principal amount

coupon rate

coupon payment


3  Why do businesses and government issue bonds ?


4  What determines the coupon rate of a bond ?


5 Define  stock

6    How do stockholders get returns on their investment ?


7  How do corporations use the bond and stock markets to raise funds ?


8 Define:


mutual fund