Which is not true about a Roth IRA?

my employer gets a choice in the investments

Price to Ratio earnings ratios

measures a company's market price compared to its earnings

have a history of paying dividends

when your employer matches your contribution up to a percentage

Which is true about a traditional 401(k)?

eligibility can be impacted depending on how long time worked for employer

Which is not true about cyclical stocks?

microsoft is an example of a cyclical stock

Which answer is not true?

All growth stocks pay dividends.

Market capitalization shows

estimated total value of a company

to measure probability of gaining a return from an investment

studbud

Stocks and Investing

14 termsStudBud Administration117 plays

Imported from external platform

Flashcards14 cardsFPractice quizPHost liveL

Questions 14

Answers

1
Which is not true about a Roth IRA?
If I switch jobs, nothing changes with my account
my employer gets a choice in the investments
you have some choice in the types of investments
contributions are made post tax
2
Coca Cola is an example of what type of stock?
growth
cyclical
penny
blue chip
3
There are three ways I can earn money on stocks.
True
False
4
Price to Ratio earnings ratios
determine market capitalization and whether or not it's a good buy
can't be used as a benchmark against other stocks to measure success
use market price and ROI for calculations
measures a company's market price compared to its earnings
5
Income stocks
have a history of paying dividends
are stocks of well established companies with solid profit records
reinvest their profits into the business so that it can grow
remain stable during an economic decline
6
An employer match is
when your employer offers a pension
is not a perk of a job
when your employer matches your contribution up to a percentage
when your employer offers a retirement plan for you
7
Which is true about a traditional 401(k)?
eligibility can be impacted depending on how long time worked for employer
nothing changes if you switch jobs
you make contributions from your bank account
you make contributions post tax
8
The Dow Jones and S&P 500 are indices for the market.
True
False
9
Which is not true about cyclical stocks?
a cruise line is a sample of a cyclical stock
microsoft is an example of a cyclical stock
are often companies that produce luxury items
perform well during growing economies but do poorly in economic downturns
10
Which answer is not true?
Stocks have ticker symbols.
All growth stocks pay dividends.
Stock can be purchased for less than market price.
To determine market capitalization, multiply shares by current stock price.
11
I bought a stock for $54 and sold it for $60. I have a
positive P/E ratio
negative ROI
capital gain of $6
capital loss of $6
12
Market capitalization shows
how many shares of stock are outstanding
a company's market share
estimated total value of a company
the current stock value
13
All of the following are examples of mutual funds EXCEPT
exchange targeted fund
index funds
target date fund
exchange traded fund
14
ROI is used
as a key metric to determine a stock's valuation
to measure probability of gaining a return from an investment
to let investors know if a stock is undervalued
to display ratios of effectiveness for stock's trade history

Stocks and Investing Flashcards | StudBud