Stocks & Bonds

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/stocks-bonds

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the bond issuer types?Bonds are issued by governments (sovereign and municipal) and corporations
2. What is a stock?A stock is a share that gives you a small piece of a company. When you own a stock, you own part of the company and can earn money if the company does well.
3. Why do companies sell stocks?Companies sell stocks to raise money for new products, growth, or paying off debt. Selling stocks lets many people invest, not just the rich.

Capital Appreciation: An increase in the market value of an asset over time.
Coupon Payment: The periodic interest payment made to a bondholder.
Diversification: An investment strategy to reduce risk by allocating investments across various asset classes.