What are blue chip stocks?

stocks that are considered safe

Why are bonds called fixed income investments?

you know exactly what you get when it matures

What does a 52 week high tell an investor?

the highest a stock has been in a year

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Econ: Unit 6 Investments review

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Economics Investment chapter review

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Questions 21

Answers

1
Which of these is NOT one of the three rules of investing?
Diversify
Start young
Stay single
Buy and hold
2
What describes a market that is rising?
Deer
Bear
Jackalope
Bull
3
What should someone sell short?
when the market is falling
when they have enough money in their account to cover
when the market is rising
When they are losing money
4
What does a companies PE ratio tell you?
Price to earnings ratio
Price to entitlement ratio
Profit to earnings ratio
Porcupine to ear wax ratio
5
What is the greatest advantage to investing in mutual funds, stocks and bonds at the same time?
professional management
dividends
high returns
diversification
6
If you buy $10,000 work of stock on margin, how much did you pay?
$3,000
$8,000
$10,000
$5,000
7
As far as interest rates go, which of the following is true?
buy bonds when rates are low
buy stock when rates are high
buy bonds no matter what
Buy stocks when rates are low
8
Who actually executes a person's order for stock?
stock broker
specialist
clerk
floor broker
9
Someone who has no checking or savings account is considered
Underbanked
Unbanked
Fully Banked
Bank Banked
10
What is defined as a share in the ownership of a corporation?
bond
money market
mutual fund
stock
11
What are blue chip stocks?
stocks that are considered safe
stocks that are traded on computers
stocks traded only face to face
stocks taht are selling below $3.000 a share
12
what defines a falling market?
bear
bull
armadillow
squirrel
13
Which type of bond is considered very risky but has the potential for very high returns?
municipal
junk
corportate
government
14
Which of these has NOT had an impact on the market since the game began?
Bob buying new tires
earnings being reported by U.S. companies
News out of China
the FED meetings about raising interest rates
15
Which of these is WRONG about selling short?
Borrow money from your broker
sell the stock at a high price
buy the stock back at a lower price
give the broker his shares back
16
Why are bonds called fixed income investments?
they are safe investments
you know exactly what you get when it matures
the rate of return can change during the bond
they are not called that
17
What is the term for when you sell stock for more than what you bought it?
short sell
margin buying
capital gains
Dividend
18
Which kind of stock allows stock owners to vote for company directors?
T-stock
preferred
common
junk
19
What does a 52 week high tell an investor?
a good time to buy
the lowest a stock has been in a year
the highest a stock has been in a year
a bad time to buy
20
What is defined as high risk in the stock market?
Bull
Bear
junk
speculation
21
Which of these is NOT true about buying on margin
can greatly increase your returns but risky
it is buying on credit
should do in a bear market
can lose someone elses' money and have to pay interest

Econ: Unit 6 Investments review Flashcards | StudBud