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W!SE Review - INVESTING - 20Q Flashcards | StudBud
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W!SE Review - INVESTING - 20Q
W!SE Review - INVESTING - 20Q
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Review of INVESTING - get ready for W!SE certification test
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
When the market has a steady decline in stock prices over a period of time, it is known as a:
Bull market
Fluctuating market
Risky market
Bear market
2
The interest earned on United States Series EE Savings Bonds is
exempt from state and local taxes.
pays a lump sum when the face value on the bond is reached
equal to the money paid to purchase it.
deducted at the time of the bond's purchase.
3
You sell your ABC stock for a higher price per share than you paid for it. You have a
Dividend
Capital gain
Capital surplus
Capital loss
4
The price of the Candy Corporation stock will generally increase when there is:
Investors are bullish on the health sector
Investor confidence is declining
Interest rates are rising
Positive news about corporate earnings
5
The federal agency that regulates the securities industry is the
Federal Reserve
Securities and Exchange Commission
Federal Trade Commission
Department of Commerce
6
A blue-chip stock can be described as
A preferred stock
A stock that pays interest
Stocks with a good quality management, products and services
A speculative stock
7
Municipal Bonds are
issued by investment firms
issued by local governments to raise $$ for local projects
a tax to raise money for city operations
guarantee high dividends to bondholders
8
Shares of stock are also known as
Money market funds
Equities
Bonds
Debts
9
Sam bought stock for $4,000 and one year later sold it for $1,000. The sale resulted in a:
Market value
Price earning
Yield
Capital loss
10
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:
The Federal Reserve
The World Bank
Its Board of Directors
The Securities and Exchange Commission (SEC)
11
You purchase a small house with 3 rental apartments. Your profits may be lower if
mortgage on the house is paid off
taxes on the house are lowered.
tenant in an apartment decides to paint the hallways.
one of the apartments is not rented.
12
You see BAD NEWS on the evening news about DEW Corp. The price of Dew stock is likely to:
Decrease
Increase
Fluctuate wildly
Remain unchanged
13
You own some stocks, bonds & two mutual funds. All of these together are called your
Retirement holdings
Investment package
Net worth
Portfolio
14
If you buy 1000 shares of a common stock at $50 a share on 50% margin. This means that the
you will pay only $5000 for the shares.
brokerage firm will own 50% of the stock that was purchased.
the brokerage firm is lending the you 50% of the money.
you will buying 2000 shares.
15
What is the largest equities market in the world?
Over-the-counter (OTC) market
NASDAQ market
American Stock Exchange (AMEX)
New York Stock Exchange (NYSE)
16
Buying a treasury bill (T-bill) is best for investors who are looking for
an investment that matures in 10-30 years.
a place to invest between $100-$500.
a higher yield than corporate bonds offer
a secure, low risk investment.
17
"Don't put all your eggs in one basket" describes what investment strategy
Liquidity
Diversification
Pooling
Return on investment
18
If you choose to reinvest your stock dividend, this means that dividend will go toward buying
preferred stock in the corporation.
bonds in the corporation.
more of the same stock.
stocks that are similar to those already owned.
19
Jennie owns Disney shares and cannot attend the annual stockholder meeting. She can
Not vote unless she is at the meeting
Plan to attend the stockholders meeting next year
Vote by mail or online through a proxy
Assign her stock voting rights to her husband
20
If there is a 2-for-1 stock split and you own 40 shares @ $80 each. When it splits, you own
20 shares of the stock and the price of each share is $80.
80 shares of the stock and the price of each share is $40.
40 shares of the stock and the price of each share is $40.
80 shares of the stock and the price of each share is $80