<p> Review Sheet – Chapter 11</p><p>Things to Compare</p><p>Characteristics of Characteristics of Name Similarities Differences First Second</p><p>Spending vs. Saving</p><p>Risk vs. Reward</p><p>Common stock vs. Preferred stock</p><p>Price- weighted index vs. market- weighted index</p><p>Dow Jones vs. S&P 500</p><p>Stock vs. Bond</p><p>Bull vs. Bear</p><p>Dividend vs. Bond Interest High beta vs. low beta</p><p>SOME Vocabulary </p><p>Beta Stock market index Yield</p><p>Common stock Outperform Maturity</p><p>Preferred Stock Underperform Default</p><p>Stock exchange Equity security Treasury</p><p>Ticker symbol Coupon Market index</p><p>Questions to Answer</p><p>1. Why would an investor pick bonds over stocks?</p><p>2. What causes stock prices to move?</p><p>3. What are market indexes used for?</p><p>4. Why do companies care about their stock price?</p>