FINA 3315 EXAM 2 HIGH-YIELD TOPICS SUMMARY 2026

FINA 3315 EXAM 2 HIGH-YIELD TOPICS
SUMMARY 2026

◉ Money market fund.
Answer: A fund that invests in short-term, low-risk debt securities.


◉ General-purpose money fund.
Answer: A taxable money market fund.


◉ Tax-exempt money fund.
Answer: A money market fund whose income is generally exempt
from federal income tax.


◉ Yield.
Answer: The income or return earned on an investment, usually
shown as a percentage.


◉ Mutual fund cash ratio (MFCR).
Answer: The amount of cash mutual funds hold relative to their
assets.


◉ Bullish.

, Answer: Expecting prices to rise.


◉ Bearish.
Answer: Expecting prices to fall.


◉ Common stock.
Answer: Ownership shares in a company that usually provide voting
rights and price appreciation potential.


◉ Preferred stock.
Answer: A type of stock that usually pays fixed dividends and has
priority over common stock for dividends and assets.


◉ Dividend.
Answer: A payment made by a company to shareholders, usually
from profits.


◉ Capital gain.
Answer: Profit made when an investment is sold for more than its
purchase price.


◉ P/E ratio.
Answer: A stock's price divided by its earnings per share.