What is a danger of over-diversification?

IF YOUR INVESTMENTS ARE SPREAD THIN, IT IS HARD TO BEAT THE MARKET

What does a Stock Quote represent?

THE LAST PRICE A SELLER AND BUYER AGREED TO TO MAKE A TRADE

Why would a stock have a ".A" at the end of its ticker symbol?

THERE ARE MULTIPLE CLASSES OF STOCK FOR THIS COMPANY

What is Capital Preservation?

TO MAKE SURE YOU DON'T LOSE YOUR INITIAL INVESTMENT

What is Preferred Stock?

STOCK THAT GETS PAID DIVIDENDS FIRST

Why would you want to diversify between sectors?

IN CASE A SECTOR-WIDE EVENT CAUSES ALL STOCKS TO DROP

Which of these items can you find in a stock quote?

THE STOCK'S CURRENT DAILY VOLUME

What should you look for when buying stock of a company you know?

IF THEIR STORES ALWAYS SEEM BUSY

What does a Stock represent?

A PERCENTAGE OF OWNERSHIP OF A COMPANY INCLUDING ASSETS AND PROFITS

What is a good way to stay diversified?

RE-BALANCE YOUR PORTFOLIO EVERY 3 MONTHS

What is "Net Change"?

THE TOTAL AMOUNT A STOCK'S PRICE HAS CHANGED SINCE THE PREVIOUS TRADING DAY

Why did investors start using ticker symbols?

IT WAS FASTER TO MOVE NEWS USING TELEGRAPHS WITH SHORT NAMES

WHEN A COMPANY FIRST SELLS SHARES OF STOCK TO THE PUBLIC

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StockTrak - Beginner

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Answers

1
What is a danger of over-diversification?
NONE OF THESE ARE SERIOUS DANGERS
IF YOUR INVESTMENTS ARE SPREAD THIN, IT IS HARD TO BEAT THE MARKET
YOUR PORTFOLIO HAS MORE RISK THAN IF YOU WERE LESS DIVERSIFIED
IT IS IMPOSSIBLE TO KEEP TRACK OF MORE THAN 10 STOCKS
2
What does a Stock Quote represent?
THE LAST PRICE A SELLER AND BUYER AGREED TO TO MAKE A TRADE
A FAMOUS QUOTE FROM THAT COMPANY'S CEO
THE CURRENT PRICE/ASSET RATIO OF A STOCK
THE CURRENT ATTITUDE PROFESSIONAL STOCK ANALYSTS HAVE TOWARDS A COMPANY
3
How can you find stock news about any company?
YOUR LOCAL NEWSPAPER
THE FRONT PAGE OF ANY BUSINESS NEWS WEBSITE
THAT COMPANY'S WEBSITE
THE QUOTES PAGE
4
Why would a stock have a ".A" at the end of its ticker symbol?
THERE ARE MULTIPLE CLASSES OF STOCK FOR THIS COMPANY
THIS WOULD ALWAYS REPRESENT "PREFERRED STOCK"
THE COMPANY HAS FILED FOR BANKRUPTCY
THIS STOCK CURRENTLY HAS SPECIAL TRADING RULES
5
What is Capital Preservation?
WHEN COMPANIES BUY BACK STOCK
IT IS WHEN YOU USE STOP ORDERS
TO MAKE SURE YOU DON'T LOSE YOUR INITIAL INVESTMENT
TO MAKE SURE YOU KEEP THE GAINS YOU MAKE INVESTING
6
How can you tell what professional stock analysts recommend?
SEEKINGALPHA.COM
SEARCHING FOR STOCK SYMBOLS ON BUSINESS WEBSITES
ALL OF THE ABOVE
THE ANALYSTS PAGE OF THE QUOTES TOOL
7
What is Preferred Stock?
STOCK THAT LETS ITS OWNERS VOTE IN SHAREHOLDER MEETINGS
STOCK THAT GETS PAID DIVIDENDS FIRST
STOCK THAT IS ALWAYS WORTH THE MOST
STOCK THAT IS ONLY OWNED BY MANAGERS
8
Over the last 30 years or so, which investment produced the highest percentage returns?
GOLD
BONDS
STOCKS
SAVINGS ACCOUNTS
9
What does it mean to "Diversify" your portfolio?
A AND B
TO HOLD MORE THAN 1 STOCK
FOR YOUR STOCKS TO NOT BE ALL IN THE SAME AREA OF THE ECONOMY
TO HAVE A MIX BETWEEN STOCKS, MUTUAL FUNDS, OR OTHER SECURITIES
10
Why would you want to diversify between sectors?
BECAUSE EVERY PORTFOLIO SHOULD HAVE ETFS
BECAUSE EVERY DIVERSIFIED PORTFOLIO HAS AT LEAST ONE ENERGY STOCK
TO MAKE SURE YOU GET THE MAXIMUM PROFIT WHEN ONE SECTOR GOES UP
IN CASE A SECTOR-WIDE EVENT CAUSES ALL STOCKS TO DROP
11
Over the last 90 years, which investment produced the most volatile returns?
BONDS
SAVINGS ACCOUNTS
STOCKS
GOLD
12
If you had invested $100 in 1972 in the 500 stocks of the S&P500 Index, how much would you have had in 2018?
$401
$3,072
$500
$1,612
13
Which of these items can you find in a stock quote?
THE STOCK'S CURRENT DAILY VOLUME
THE DATE THE STOCK FIRST WAS SOLD TO THE PUBLIC
CURRENT ASSETS
HISTORICAL PRICES FOR A STOCK
14
What should you look for when buying stock of a company you know?
IF THEIR STORES ALWAYS SEEM BUSY
IF YOUR FRIENDS ALL OWN THAT STOCK
IF YOUR FAMILY KNOWS SOMEONE WHO WORKS THERE
IF YOU LIKE THEIR PRODUCTS
15
What does a Stock represent?
A CONTRACT FOR A COMPANY'S GOODS OR SERVICES
A LOAN YOU MAKE TO A COMPANY THAT THEY MUST PAY BACK
STOCKS ARE JUST TOOLS USED BY INVESTORS TO MAKE MONEY
A PERCENTAGE OF OWNERSHIP OF A COMPANY INCLUDING ASSETS AND PROFITS
16
What is a good way to stay diversified?
RE-BALANCE YOUR PORTFOLIO EVERY 3 MONTHS
INVEST ONLY IN MUTUAL FUNDS
INVEST ONLY IN ETFS
THESE ARE ALL GOOD WAYS TO STAY DIVERSIFIED
17
What is "Net Change"?
THE TOTAL AMOUNT A STOCK'S PRICE HAS CHANGED SINCE THE MARKET OPENED
THE TOTAL PRICE OF A STOCK, IN CENTS
THE CHANGE IN A STOCK'S VALUE OVER THE LAST YEAR
THE TOTAL AMOUNT A STOCK'S PRICE HAS CHANGED SINCE THE PREVIOUS TRADING DAY
18
The company Apple has how many shares outstanding?
5,575 SHARES
5,575,000,000 SHARES
55,750 SHARES
5,575,000 SHARES
19
Why did investors start using ticker symbols?
INVESTORS LIKED TO USE "TEXT SPEAK" TO COMMUNICATE IN CODE
IT MAKES IT FASTER TO LOOK UP MULTIPLE COMPANIES AT A TIME ON A COMPUTER
IT WAS FASTER TO MOVE NEWS USING TELEGRAPHS WITH SHORT NAMES
TO CONFUSE "CASUAL" INVESTORS AND KEEP TRADING TO PROFESSIONALS
20
What is an IPO?
WHEN A COMPANY GETS ANGRY AT ITS SHAREHOLDERS AND HAS A MEETING
WHEN A COMPANY FIRST SELLS SHARES OF STOCK TO THE PUBLIC
A NEW APPLE PRODUCT
WHEN THE GOVERNMENT CREATES SHARES ON A STOCK EXCHANGE
21
What is the most common winning investment strategy for new beginners?
BUY WHAT YOU KNOW
VALUE INVESTING
LEVERAGED ETF DAY TRADING
PICKING HOT STOCKS FROM THE NEWS
22
What tools does this simulator have to help you choose stocks?
CURRENT MARKET NEWS
RESEARCH TOOLS WITH COMPANY INFORMATION AND QUOTES
SUGGESTED STOCKS LISTS
ALL OF THE ABOVE
23
Where were stocks first created?
ROME
NEW YORK
EGYPT
LONDON
24
What makes up a "Ticker Symbol" in the United States?
BETWEEN 1 AND 5 LETTERS ONLY
BETWEEN 1 AND 7 NUMBERS ONLY
THE FIRST 3 LETTERS OF A COMPANY'S NAME
BETWEEN 1 AND 5 LETTERS OR NUMBERS

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