Investing Basics (Elementary School)

Question 1

If a company makes a very popular product with high sales, what could that likely mean for a shareholder?

Accepted Answer

Their stock value goes up

Question 2

Risk measures the chance that some kind of loss might happen.

Accepted Answer

True

Question 3

Bonds are money you loan to a company or government.

Accepted Answer

True

Question 4

Sometimes companies share their profits with shareholders, and we call those ________.

Accepted Answer

Dividends

Question 5

If an investment has a very high expected return, what kind of risk is there for losing investment money?

Accepted Answer

High risk

Question 6

If there are more sellers than buyers, the stock price would likely ...

Accepted Answer

Decrease

Questions 6