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Stock Market II Flashcards | StudBud
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Stock Market II
Stock Market II
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StudBud Administration
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prep the stock market test
Flashcards
14 cards
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Practice quiz
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Questions
14
Answers
1
Short selling
allows investors to only lose what they order a "sell" on
Is a sound way to diversify your portfolio
is one way to make money off of a bear market
can expose investors to potentially unlimited liability
2
Which of the following is the least important factor to consider when shopping for stock
The current trading price
If the company is public
Your risk tolerance
Historic trends of the stock (52 week high/low)
3
How can we tell this is a mutual fund?
The words "500 Index" suggest it is based off of the S&P 500
Only mutual funds can close above $200.00
The symbol ends in an X
Its growth is characteristic of a mutual fund
4
To reduce exposure to risk, investors need to
pick a sector, research it, and invest heavily in it
pick a few stocks from the NASDAQ
avoid mutual funds, because they are highly volatile
diversify their investments; buy stocks from many industries
5
Kim wants a diverse collection of stocks & then buys Sun Network TV, AMC Network, & TV Vision
Kim is failing- all of her stocks are from the same industry
Kim's on her way to having a diverse set of stocks- Nice!
6
What is the -.14 (in red, at the top) an indication of?
The stock dropped $.14 over the past two trades
The stock gained $.14 in value
Currently, the stock is $.14 more than the previous close
Currently, the stock is $.14 less than the previous close
7
Two ways to make money off of stock: 1) Sell it for more than you paid, 2)
Pay broker fees
Earn dividends
Short sell at a higher price
Earn 12b-1 fees
8
Which of the following ticker symbols represents a mutual fund
VWIGX
T
AAPL
GRPO
9
If a ticker symbol ends in an "X"
it means the company is old
it is an indication of whether or not is pays dividends
it is an indication the company performed poorly last year
it is the symbol for a mutual fund
10
A 55 year-old shouldn't be willing to take the same about of investing risks as a 25 year-old
True
False
11
What was the last price this stock traded at?
$35.50
28.19
$.49
$28.21
12
IPO stands for
Initial Press Outing
Investment Price Optimized
Incentives Per Offering
Initial Public Offering
13
401ks and 403bs
are investments in commodities
are assortments of stocks managed for maximum profit
are accounts you can set up w/out your employer
are two ways employers can set up employees for retirement
14
Which of the following ticker symbols represents an "old" company
GRPO
T
VWIGX
AAPL