UNIT 7: Investing Basics
BUS 2204 – Personal finance
Instructor: Stephen Dimarco
December 27, 2021
a. What are bonds? What are their features and how are they traded?
b. What are stocks? What are their features and how are they traded?
c. How do you calculate an annual rate of return?
d. You buy a share of stock for $100 and it pays no dividend. A year later the
market price is $105. What is the rate of return?
e. You buy a share of stock for $100 and a year later the market price is $105 and it
pays a dividend of $2. What is the return?
BUS 2204 – Personal finance
Instructor: Stephen Dimarco
December 27, 2021
a. What are bonds? What are their features and how are they traded?
b. What are stocks? What are their features and how are they traded?
c. How do you calculate an annual rate of return?
d. You buy a share of stock for $100 and it pays no dividend. A year later the
market price is $105. What is the rate of return?
e. You buy a share of stock for $100 and a year later the market price is $105 and it
pays a dividend of $2. What is the return?
