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on Bond Terms ? Face Value – Amount being borrowed by the seller of the bond ? Coupon Rate – Rate of interest on the bond Types of Bonds ? Corporate Bonds – Issued by corporations – Used to finance buildings and equipment ? Municipal Bonds – Issued by local and state governments – Used to finance schools, roads, airports, etc. Types of Bonds ? Treasury Bonds – Issued by federal government – Known as Savings or Federal Bonds – Types: ? Series EE Bonds – Cost half the face value – After a specified number of years the bond bees worth the face value. ? Treasury Bills – Issued for three months to one year ? Treasury Notes – Issued for two to ten years ? Treasury Bonds – Issued for ten or more years Stocks ? Stock – Share of ownership in a business ? Stock Certificate – Proof of ownership in a corporation ? Market Value – Price at which a stock can be bought or sold ? Dividends – Part of profits shared with stockholders Types of Stocks ? Preferred – Priority over mon stockholders in the payment of dividends – No voting rights ? Common – General ownership in a corporation and a right to share in the corporation’s profits – Right to vote at shareholder meetings ? One vote per share Understanding Stock Quote Tables ? 52 Week Hi – Highest price during previous 52 weeks ? 52 Week Lo – Lowest price during previous 52 weeks ? Stock – Company name abbreviated ? Stock Symbol – Ticker symbol ? Dividend – Current dividend in dollars per share based on the last dividend paid ? Yield – Dividend yield based on the current selling prices per share Understanding Stock Quote Tables ? PE – Price/Earnings ratio, paring the price of the stock with earnings per share ? Volume – Number of shares traded ? High – Highest price during the day ? Low – Lowest price during the day ? Close – Closing price for the day ? Net Change – Change in the closing price today pared with closing price on the previous day 2. Floor broker (buyer) goes to the trading post at which time this specific stock is traded. It is traded with the floor broker (seller) who has an order to buy. Typical transactions follow these steps: 1. Account executive receives your order to sell stock and relays to the brokerage firm’s representative at the stock exchange. 3.