Question

An Asset that is classified as equity but doesn't grant voting rights to it owner (however it does pay a fixed dividend) is called _____. Shares of stock of foreign companies that can be bought in the U.S. are called ______. ______ represents ownership in a company with complete voting rights. Sometimes receive dividends payments as well. _____ measures the expected standard deviation of the S&P 500 Index. Investors can trade securities on this.

Word Bank: Credit Def Swaps, The volatility index, American Depository Receipts, Certificate of Deposit, Common Stock, Mortgage backed Securities, Preferred stock   

Answer 1

Based on the given, the blanks are as below (answers higlighted in bold):

An Asset that is classified as equity but doesn't grant voting rights to it owner (however it does pay a fixed dividend) is called Preferred Stock (these can be considered as hybrid instruments with stock plus debt like characteristics). Shares of stock of foreign companies that can be bought in the U.S. are called American Depository Receipts (These are traded on American Stock exchanges). Common Stock (or Common Equity instruments shall have complete voting rights and ownership rights on the company) represents ownership in a company with complete voting rights. Sometimes receive dividends payments as well. The volatility index,measures the expected standard deviation of the S&P 500 Index. Investors can trade securities on this.