What does a 52 week high tell an investor?

the highest a stock has been in a year

Why are bonds called fixed income investments?

you know exactly what you get when it matures

What are blue chip stocks?

stocks that are considered safe

studbud

Econ: Unit 6 Investments review

21 termsStudBud Administration103 plays

Economics Investment chapter review

Flashcards21 cardsFPractice quizPHost liveL

Questions 21

Answers

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

Econ: Unit 6 Investments review Flashcards | StudBud