D775 WGU SECTION 1 EXAM WITH ACCURATE SOLUTIONS
1. Personal eFinance: eManaging eindividual eor ehousehold efinancial eactivities
2. Public e Finance: e Managing ea egovernment's erevenues, eexpenditures, eand edebt
3. Business eFinance: eManaging ea ecompany's efinancial eactivities eand estrategies
4. Capital e Appreciation: e when ea estock eis ebought eat ea elower eprice ethan ewhat eit eis esold ea
5. Preferred estocks: eprovide emore estability ewith efixed edividends eand ehigher epriority ein easset
eclaims ebut eusually elack evoting erights, eottering eless econtrol eover ecorporate egovernance.
6. Common estocks: eotter ethe epotential efor ehigher ereturns eand evoting erights ebut ecome ewith
egreater erisk edue eto etheir elower epriority ein eclaims eon eassets.
7. : e Common estock erepresents eownership ewith evoting erights eand evariable edividloans ethat evarious
eentities e(like ebusinesses, e governments, eor eindividuals) eissue, eor esell, eto eraise ecapital.ends,
8. Bonds: eloans ethat evarious eentities e(like ebusinesses, egovernments, eor eindividuals) eissue, eor esel
eto eraise ecapital.
1 e/
e8
, 9. maturity: ea especific edate ewhen ethe elast ecoupon eis edue ealong ewith ethe eoriginal eface evalue eo
ethe ebond
10. junk ebonds/ especulative ebonds: ehigh-risk, eand einvestors ehope eto eearn ea
erelatively ehigher ereturn edue eto ethat erisk.
11. Corporate eBonds: eIssued eby efirms eto efinance eoperations, eexpansions, eand eother
ebusiness eactivities. eTypically ecarries ehigher eyields edue eto ehigher erisk
12. public ebonds:: eIssued eby egovernment egroups. eThere eare etwo emain ekinds emunicipal
eand etreasury.
13. Municipal eBonds e/ emunis: eIssued eby estates eor elocal egovernments eand
emunicipalities efund epublic eprojects, elike einfrastructure esuch eas epublic eroads, ehospitals,
eparks, eand efire edepartments.
14. Treasury ebonds e/ etreasuries: e When efirms ehave eextra ecash esitting ein etheir
eaccount- eshort-term, enon-risky einvestments efor ethe ecash.
15. How edo ecompanies eraise ecapital ethrough edebt eand eequity
efinancing?: eCompanies ecan eissue ebonds e(debt efinancing), ewhich emust ebe erepaid ewith
einterest, eor esell estock e(equity efinancing), ewhich egives eownership eto einvestors ebut edoes enot erequire
erepayment.
16. Financial ederivatives: eThey ederive etheir evalue efrom ethe eperformance eof eunderlying
eassets, eindexes, eor
rates.
17. Options: efinancial econtracts ethat egive ethe ebuyer ethe eright, ebut enot ethe eobligation, eto
ebuy eor esell ean easset eat ea epredetermined eprice, eknown eas ethe e"strike eprice," ebefore ea especified
edate
18. Futures: estandardized econtracts eobligating ethe ebuyer eto epurchase eor ethe eseller eto esell ean
easset eat ea epredetermined eprice eon ea especified efuture edate.
19. Mutual e Funds: e typically eopen-end einvestment ecompanies ethat eissue eshares eto ethe
epublic eand eare epriced edaily ebased eon etheir enet easset evalue e(NAV
2 e/
e8
1. Personal eFinance: eManaging eindividual eor ehousehold efinancial eactivities
2. Public e Finance: e Managing ea egovernment's erevenues, eexpenditures, eand edebt
3. Business eFinance: eManaging ea ecompany's efinancial eactivities eand estrategies
4. Capital e Appreciation: e when ea estock eis ebought eat ea elower eprice ethan ewhat eit eis esold ea
5. Preferred estocks: eprovide emore estability ewith efixed edividends eand ehigher epriority ein easset
eclaims ebut eusually elack evoting erights, eottering eless econtrol eover ecorporate egovernance.
6. Common estocks: eotter ethe epotential efor ehigher ereturns eand evoting erights ebut ecome ewith
egreater erisk edue eto etheir elower epriority ein eclaims eon eassets.
7. : e Common estock erepresents eownership ewith evoting erights eand evariable edividloans ethat evarious
eentities e(like ebusinesses, e governments, eor eindividuals) eissue, eor esell, eto eraise ecapital.ends,
8. Bonds: eloans ethat evarious eentities e(like ebusinesses, egovernments, eor eindividuals) eissue, eor esel
eto eraise ecapital.
1 e/
e8
, 9. maturity: ea especific edate ewhen ethe elast ecoupon eis edue ealong ewith ethe eoriginal eface evalue eo
ethe ebond
10. junk ebonds/ especulative ebonds: ehigh-risk, eand einvestors ehope eto eearn ea
erelatively ehigher ereturn edue eto ethat erisk.
11. Corporate eBonds: eIssued eby efirms eto efinance eoperations, eexpansions, eand eother
ebusiness eactivities. eTypically ecarries ehigher eyields edue eto ehigher erisk
12. public ebonds:: eIssued eby egovernment egroups. eThere eare etwo emain ekinds emunicipal
eand etreasury.
13. Municipal eBonds e/ emunis: eIssued eby estates eor elocal egovernments eand
emunicipalities efund epublic eprojects, elike einfrastructure esuch eas epublic eroads, ehospitals,
eparks, eand efire edepartments.
14. Treasury ebonds e/ etreasuries: e When efirms ehave eextra ecash esitting ein etheir
eaccount- eshort-term, enon-risky einvestments efor ethe ecash.
15. How edo ecompanies eraise ecapital ethrough edebt eand eequity
efinancing?: eCompanies ecan eissue ebonds e(debt efinancing), ewhich emust ebe erepaid ewith
einterest, eor esell estock e(equity efinancing), ewhich egives eownership eto einvestors ebut edoes enot erequire
erepayment.
16. Financial ederivatives: eThey ederive etheir evalue efrom ethe eperformance eof eunderlying
eassets, eindexes, eor
rates.
17. Options: efinancial econtracts ethat egive ethe ebuyer ethe eright, ebut enot ethe eobligation, eto
ebuy eor esell ean easset eat ea epredetermined eprice, eknown eas ethe e"strike eprice," ebefore ea especified
edate
18. Futures: estandardized econtracts eobligating ethe ebuyer eto epurchase eor ethe eseller eto esell ean
easset eat ea epredetermined eprice eon ea especified efuture edate.
19. Mutual e Funds: e typically eopen-end einvestment ecompanies ethat eissue eshares eto ethe
epublic eand eare epriced edaily ebased eon etheir enet easset evalue e(NAV
2 e/
e8
