Questions And Answers 2025
Accrual CORRECT ANSWERS A type of accounting system that reports income when
earned and expenses when incurred
Advisory stockbroker CORRECT ANSWERS A broker who gives advice on what shares
or investments to buy
Amortization CORRECT ANSWERS Repayment of a loan by monetary installments
Arbitrage CORRECT ANSWERS The process of buying securities at a low price in one
market and then selling them at a higher price in another market
Basic point CORRECT ANSWERS A hundredth of one percent (.01%)
Bear market CORRECT ANSWERS A widespread decline in security prices causes
bears to believe share prices will fall. Bears sell securities, which they do not presently
own hoping they can buy them at a lower price later after the price has fallen
Blue chip CORRECT ANSWERS A large and creditworthy company
Collateral CORRECT ANSWERS Property that is offered to secure a loan or other
credit and that becomes subject to seizure on default
Compliance CORRECT ANSWERS The act of accepting and meeting specific
standards
Compound interest CORRECT ANSWERS Interest earned on the principal amount and
then accumulated over a period of time
Consolidation CORRECT ANSWERS The combining of two separate companies into
one
Corporate bond CORRECT ANSWERS Bonds issued by a company
Data mining CORRECT ANSWERS Sifting through large amounts of data to find the
necessary information
Deferred shares CORRECT ANSWERS Shares that do not receive income until they
have reached a certain level
Dividends CORRECT ANSWERS Money distributed to the owners of a business as
profits