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Financial Literacy Practice Flashcards | StudBud
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Financial Literacy Practice
Financial Literacy Practice
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Simple Financial Literacy Test Prep and Review
Flashcards
25 cards
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Practice quiz
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Host live
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Questions
25
Answers
1
Buying stocks is a sure way to make money.
True
False
2
Someone who owns stock in a company is called a shareholder.
True
False
3
Diversifying your portfolio means to buy stocks from many different industries.
True
False
4
Any stock that goes up in price must eventually come back down.
True
False
5
Bears, Bulls, and Pigs are found in the stock market.
False
True
6
A ticker symbol always begins with the first three letters of a company's name.
False
True
7
Corporations sell new issues of stock on the New York Stock Exchange.
False
True
8
Most stocks on the stock market are sold by the United States Government.
True
False
9
The SEC stands for Stocks and Economy Commission.
True
False
10
Only rich people invest in the stock market.
False
True
11
Stocks are items found in the storeroom of a grocery store.
False
True
12
It is hard to buy a good stock today because all the good ones have already been purchased.
True
False
13
People can buy stocks on the Internet.
False
True
14
When the stock market goes up, it causes the economy to grow.
False
True
15
The best time to invest in the stock market is when you need to save money for a college fund.
False
True
16
Short-selling is legal in the United States.
False
True
17
There are 50 companies that make up the Dow Jones Industrial Average.
True
False
18
The NYSE closes at 2pm Eastern time.
True
False
19
"Insider" stock trading means that trading stocks takes place inside the building.
True
False
20
Stock markets are open on business days around the clock, around the world.
True
False
21
Sometimes companies buy their own stocks on the stock market.
True
False
22
If the stock market goes up 30 percent one year, it will fall by 30 percent in the next year.
Maybe
False
Most Likely
True
23
Stock prices are set by the Securities & Exchange Com., a regulatory agency of the government.
False
True
24
The benefit to diversifying your portfolio is that you learn about all kinds of stocks.
True
False
25
It is wise to buy high, and sell low.
True
False