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Unit 5: Smart Investing Flashcards | StudBud
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Unit 5: Smart Investing
The difference between stocks and mutual funds are:
What is an IPO?
Unit 5: Smart Investing
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Smart Investing
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Answers
1
What is an IPO?
When a company gets angry at its shareholders.
When a company first sells shares of stock to thepublic.
When the government creates shares on a Stock Exchange
A new Apple product
2
The difference between stocks and mutual funds are:
All the above
mutual funds are for many companies
mutual funds are bought by people pooling their money
stocks are for one company
3
Share prices of stock do not change.
True
False
4
You should you know the difference between a short-term and long-term goal?
True
False
5
Finish the following quote: “The greater the risk, the greater the ____________”
Gain
Reward
Money
Person
6
You should be able to name one short term and one long term goal.
False
True
7
What was the biggest event leading to stocks being highest traded security type on the exchange
The Industrial Revolution.
Bond prices started to fall
The invention of the Telegraph
The election of Abraham Lincoln
8
There is no risk involved with saving.
False
True
9
Buying clothes or buying an investment will both earn you money.
False
True
10
When should you start planning for retirement?
When you are young.
When you are getting close to retirement
When you are 40 years old.
Never
11
When a company is sharing a portion of its profits with its investors it is called ___?
Interest
Stock
Winnings
Dividend
12
Dow Jones Industrial Average tracks the stock performance of 100 top U.S. companies.
False
True
13
What do you think the ticker symbol WLMT might stand for?
Walmart
wacky world
Weird
Wonder Bread
14
True or False: There is no risk involved in investing.
True
False
15
During one week, a stock went from $10 to $20, what was the average price?
$15
$12
$10
$20
16
If a stock started at $32 and ended at $56, did the stock go up or down?
down
up
17
If you buy something as an investment, you hope the value or price over time _________
goes up
stays the same
goes down
does nothing
18
NASDAQ is the world’s largest electronic stock market.
False
True
19
72 divided by the interest rate equals how long it takes to triple your money.
True
False
20
If a stock price started at $20 and ended at $40, what was the change in price?
$40
$20
$30
$15
21
How will you save money to buy big items in your life?
Budget
Invest
All the above
Save
22
Mutual funds help to spread risk when investing.
False
True
23
You should seek out information before you make any investments.
False
True
24
An example of a high risk investment would be:
oil and gas
certificate of deposit
savings
bonds
25
Purchasing stock in a company means that you are purchasing a portion, or __ of ownership.
share
stacks
space
money
26
When you earn money in the stock market it is called a:
Capital Loss
Captain Charlie
Jackpot
Capital Gain
27
What items might cost you the most during your life?
House
All the above
Car
Education
28
The average return of stock and mutual fund investments over the last 50 years has been:
8-12%
0-3%
13-16%
4-7%
29
Some common types of investments are:
all the above
mutual funds
Stocks
bonds
30
72 divided by years equals the interest rate needed to reach your goal.
False
True
31
The higher the interest rate, the less time it takes money to grow.
True
False
32
The average American household income is:
$50,000
$30,000
$20,000
$40,000
