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General investing & info on stock Flashcards | StudBud
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General investing & info on stock
General investing & info on stock
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Questions
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Answers
1
People buy stocks when what?
they have time to take on some risk
they want dividend income
All of these
they want the value to grow
2
When a value of stock share has recently been agreed upon by the buyer and seller, it sets the current price.
True
False
3
A true capital gain or loss is experienced when the value of a stock goes up or down.
True
False
4
All are bank savings vehicles EXCEPT
CDs (Certificates of Deposit)
bonds
Regular Savings Account
Money Market Accounts
5
Bonds are when you own a sliver of a company.
False
True
6
Active Income is the money you collect from receiving rent payments from your properties.
True
False
7
Investments are insured by the government.
False
True
8
Stock are all these EXCEPT which?
part of ownership of a company
an investment asset
lending your money to a company
equity
9
Before companies issue public stock, they must have
profit
a prospectus
a ticker symbol
a Chief Operating Officer
10
The following are all U.S. stock indices EXCEPT which?
The Dow Jones
Ameritrade
S & P 500
NASDAQ
11
"Business Risk" is high when you put your investment money into one or two stocks.
False
True
12
Stock prices don't always match stock value.
True
False
13
Facebook's IPO was a success.
True
False
14
People save instead of investing when what?
their objective is longer term
they are willing to take on risk
they want 8 to 10% returns
they are concerned about retention not growth
15
Market Capitalization is what?
when a product enjoys a market share
is price per share X shares outstanding
is the maximum # of shares that can be sold to the public
when a business sells goods not services
16
Because there can be a lot of market noise, investors try to focus on all EXCEPT
Consistent management and processes
The innovation of the company
The intrinsic value of the company
Media reports exclusively
17
You must pay for stock information such as the current price, P/E ratio and Dividend Yield.
True
False
18
People who day-trade, buy and sell based on indicators and indices, most often beat the market.
True
False
19
When you own fewer shares of common stock you
are not part owner
vote with equal weight to your vote
don't vote
vote thru proxy
20
There are small, medium and large cap companies that have stock being traded on the exchange.
True
False
21
We talk about economic indicators in C&FM so students will know how to day-trade, buy and sell stocks daily.
True
False
22
The only way for people to make money on real estate is to buy the property for a low price and sell it for a higher.
True
False
23
I.P.O. stands for
international public option
initial public offering
investment potential opportunity
interest plus original principle
24
The main theme in the book
Rich Dad, Poor Dad
is?
your home is an asset
you only need an 8th grade education
wealth is created when assets make money
thinking about money is evil
25
All companies sell stock to the public.
False
True
26
Portfolio Diversification is all EXCEPT
Changing %'s of money in various market cap levels
a strategy to reduce business risk
spreading dollars into diff industry stocks
a figure in a prospectus
27
All are good things to look for before buying stock EXCEPT
High dividend yield
high debt
consistently strong management team
Consistent EPS (earnings per share)
28
The best economic indicator that is truly indicative of future growth in our economy is which?
GDP (Gross Domestic Profit)
CPI (Consumer Price Index)
Consumer Confidence Index
LEI (Leading Economic Indicators)
29
The most common stock purchase is of "common" stock.
True
False
30
Stockbrokers buy and sell shares for an investor when the investor pays a fee.
True
False
31
One should look at economic indicators for first time purchases of stock and years later when planning to sell.
False
True
32
Small value shareholders have equal voting rights along with bigger valued shareholders in company decisions.
True
False
33
All are good things to look for in a company that you're considering purchasing stock in, EXCEPT
low debt
low credit score
undervaluation (high dividend yield)
consistent EPS (earnings per share)