stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
WHS Investing Unit 2017-2018 Flashcards | StudBud
Explore
/
WHS Investing Unit 2017-2018
Interest on interest
Why would you use the Rule of 72?
WHS Investing Unit 2017-2018
26 terms
·
StudBud Administration
·
364 plays
Preparation for Investing Unit test
Flashcards
26 cards
F
Practice quiz
P
Host live
L
Questions
26
Answers
1
Why would you use the Rule of 72?
Determine how long it takes to double your money
Determine where to invest your money
Determine your tax amount
Determine which stock will make money
2
Interest on interest
Compound interest
Diversification
Risk management
Value stocks
3
Mutual funds are
Funds without any risk
Only open to your mutual friends
Managed by yourself only
Investments that offer diversification
4
You collect autographs hoping to make money in the future. However, later on no one wants them
Collectibles can be risky
Collectibles cannot be traded as investments
Collectibles will always make you money
Collectibles are only good for short periods
5
You sell your stock for $2000 more than you paid for it. You have a
Capital Gain
Diversified Portfolio
Capital Loss
Mutual Fund
6
What determines the price of stocks on the market?
The SEC
Supply and Demand
The NASDAQ
The NYSE
7
Stock split announced at 2 for 1. You bought 10 shares originally at $2.00 per share. Now:
10 shares at $4.00
20 shares at $4.00
10 shares at $1.00
20 shares at $1.00
8
Which statement is true about investing
You will always make money if you wait a while
You will never make money if you leave it in for a long time
You may or may not make money
You can make double your money if you diversify
9
Stock Exchanges
NASDAQ & NYSE
NYSE & NAMEW
AARP & NYSE
AARP & SEC
10
Bought stock at $10.00/share. Sell it at $12.00/share. You have a
Capital Gain
Penny Stock
Mutual Fund
Capital Loss
11
You buy and sell stock through a stockbroker. You will
Have to report it to the SEC
Pay a front and back load fee
Have to do a stock split
Pay a transaction fee
12
Which will earn you the most interest (assuming the same interest rate?
Compound interest paid quarterly
Simple interest paid once a year
Diversified interest
Simple interest paid twice a year
13
Optimistic, Upward, Feeling Good - Descriptions of a
Bear Market
Bull Market
Capital Gain
Penny Stock
14
Which of the following pays a dividend?
Savings Account
Certificate of Deposit
Common Stock
Money Market Fund
15
Corporation borrows money from an investor and pays it back plus interest
Penny Stock
Bond
Dividend
Mutual Fund
16
Well established companies paying good dividends
Mutual Funds
Penny Stocks
Blue Chips
Mutual Market
17
Company you have stock in sends you a check every quarter, but you didn't sell the stock.
Capital Gain
Dividend
Mutual Fund
Capital Loss
18
You can redeem a bond for face value
After it makes money
Only when you make the interest payment
On the maturity date
Whenever you want to without penalty
19
Company you own stock in goes out of business. You will
Loss all or part of your investment
Make a huge gain
Diversify your stock with them
Have a stock split
20
Dividend announced at 50 cents per share. You own 100 shares . Your dividend is
$200
$5000
$50
$100
21
You have a very low tolerance for risk. You should consider
Investing in penny stocks
Investing in mutual funds
Investing in bonds
Investing in the stock market
22
First time a company makes it stock available to the public
Individual Portfolio Offering
Initial Public Offering
Interested Parties Only
Initial Portfolio Only
23
An investment that quickly and easily converts to cash is said to be
Compounded
Risky
Diversified
Liquid
24
Why do you want a diversified portfolio?
To make a lot of money quickly
To decrease your risk by spreading out your options
To make a little bit of money over the long run
To increase your risk
25
You have $1000 and you earn 4%. How long will it take to double it
18 years
16 years
4 years
8 years
26
You don't want to invest, worried about your investments, scared for the economy
Bear Market
Bull Market
Diversification
Portfolio
