Ownership can pay dividends and interest and the stocks can rise in value.

What is diversification?

Spreading out your money into different investments.

Exchange traded funds

Like a mutual fund but trades like a stock in the stock exchange.

Refers to a companies stock price to earnings. Is the stock a good deal?

Time Value Money is...

worth less now than later due to inflation.

Measures the stocks of 30 prominent companies in the US.

Well established company, carries less risk. Nike, Microsoft.

Bull investors are optimistic and buy. Bear, investors pessimistic and sell

Money is worth more now than later due to inflation.

Form of lending from a company or government.

Whic ranks from high to low with regards to risk.

collectibles, stocks, mutual funds, bonds.

Investors pool money to buy stocks and bonds based on a selection.

Price to a company's earnings. 30 would be $30 per share per $1 received.

Common Vs. Preferred Stocks

Preferred cannot vote but would get paid prior to common if bankrupt., Common have voting rights, preferred have no voting rights.

Let's invetors buy and sell ownership of stocks.

Companies grow over time, high risk if short run.

Use these to judge the risk of a bond.

Insurance plan that later gives you a steady stream of income.

Large cap has 10 billion or more stock issued., Small cap stock has 2 billion or less issued.

group of financial assts used together based on your investment philosophy.

How easily you can access your money.

Investment Philosophy

The longer the time frame to invest, the more risk you can take on.

Are super risky but potentional for high return.

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New Investment Game

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Questions 40

Answers

1
Mutual Funds
Always make money.
All the above.
Never make money.
Ownership can pay dividends and interest and the stocks can rise in value.
2
What is a stockholder?
Owner of the stock.
A shareholder
Can make and lose money.
All answers.
3
How much money should you save for emergencies?
No need.
2-4 months worth of expenses.
3-6 months worth of expenses.
1 year's worth.
4
What is diversification?
Purchasing bonds only.
Purchasing gold.
Purchasing 1 investment.
Spreading out your money into different investments.
5
Exchange traded funds
Like a mutual fund but trades like a stock in the stock exchange.
A bond.
A commodity.
Exactlylike a mutal fund.
6
What is a P/E ratio?
Refers to earnings to stocks.
Refers to a companies stock price to earnings. Is the stock a good deal?
A type of bond
Physical Education
7
You place $1000 into a bond that pays 4% interest per year. What is the interest in 7 months?
$70
$25
$40
$23.33
8
When will money double?
6% return, 10 years.
5% return, 35 years.
6% return, 12 years.
3% return, 7.2 years.
9
You deposited $1000 and you are receiving 4% compound interest, the inflation rate is 1%. Money worth after 3 years?
$1090
$1091.78
$1120
$1010
10
You deposited $1000 into a mutual fund that pays 3% compound interest. What did you make in 7 months?
$1000
$30
$12.50
$17.50
11
Time Value Money is...
worthless.
worth less now than later due to inflation.
worth more now than later due to interest you gain.
worth the same.
12
You deposited $1000 and will make 3% compound interest each year for 4 years. You end up with...
$1126.79
$1120
$1000
$1125.51
13
You place $1000 into a mutual fund, compound interest pays, 4%, inflation is 1%. What is your money worth after 3 years
$1090
$1092.78
$1120
$1091.78
14
Dow Jones
Measures all stock markets.
Measures computer stocks only.
Measures the stocks of 30 prominent companies in the US.
Measures Canadian stocks only.
15
Blue Chip
Well established company, carries less risk. Nike, Microsoft.
Penny stock.
Stocks printed on blue paper.
Stocks that are not as stable but pay super well.
16
Market Conditions
Bull investors are optimistic and buy. Bear, investors pessimistic and sell
Bear investors are optimistic and buy. Bull, investors pessimistic and sell
All are true.
Bears and bulls do not invest they are animals.
17
Time Value Money
Money is worth more now than later due to inflation.
Time is money.
Money is time.
Money is worth more later.
18
Bonds
Form of lending from a company or government.
Form of cost from a company or government.
All 3 answers.
Form of profit from a company or government.
19
Your investments must outpace
Your neighbour's investments.
Everyone's, I tell you, everyone's.
Deflation
Inflation
20
Whic ranks from high to low with regards to risk.
collectibles, bonds, stocks, mutual funds.
collectibles, stocks, mutual funds, bonds.
stocks, bonds, mutual funds, collectibles.
bonds, stocks, mutual funds, collectibles.
21
Stock Market Index
All answers
Descries the market at a particular point in time.
Computed with prices from selected stocks.
Method of measuring the value of a selection of the stock market.
22
Mutual Funds
Investors pool money to buy stocks and bonds based on a selection.
A type of bond.
A type of commodity.
A type of future.
23
Insider Trading
Illegal
Legal
Fun to do
not this answer. don't pick this. it is the wrong answer.
24
What is a P/E ratio?
Physical education.
Price to a company's earnings. 30 would be $30 per share per $1 received.
If 30, it would be $1 per $30 received.
If 30, it costs $30 per stock.
25
Common Vs. Preferred Stocks
Preferred can vote
Preferred have voting rights, common have no voting rights.
Preferred cannot vote but would get paid prior to common if bankrupt.
Common have voting rights, preferred have no voting rights.
26
Stock Exchange
Villagers that throw paper at you when you walk by.
A place that holds your stocks.
A place that steals your stocks.
Let's invetors buy and sell ownership of stocks.
27
Growth Mutual funds
pay steady and reliable dividend and interest payments.
None of the above.
All the above.
Companies grow over time, high risk if short run.
28
You have invested $1000 into something that pays a compound interest of 3% per year. You keep this in there for 4 years
$1126.7
$1125.51
$1120
$1092.73
29
Bond rating agency
All answers.
A waste of time.
Use these to judge the risk of a bond.
There are many.
30
Stock prices are determined by...
Supply and Demand.
Cost
Profit
Dividends
31
Annuity
A bond
A stock
Insurance plan that later gives you a steady stream of income.
An annual stock that pays well.
32
Capitalization
Small cap stock has 2 thousand stock or less issued.
Large cap has 10 billion or more stock issued.
Small cap stock has 2 billion or less issued.
Large cap has 100000 stock or less issued.
33
Which gives you the best protection?
Hot wallet
Both
Cold wallet
All 3 answers.
34
You paid $2000 for a bond, the return is based on simple interest which pays 2%. What will you have in 3 years?
$2122.42
$2080.8
$2080
$2120
35
What is a portfolio?
Your mother said no.
group of financial assets used together based on what you will never buy.
group of financial assts used together based on your investment philosophy.
A group of financial assets purchased by everyone.
36
What is liquidity
The ability to purchase stocks while taking a shower.
How easily you can access your money.
The ability to purchase water.
The potential return.
37
Investment Philosophy
If you are old you should invest aggressive.
The shorter the time frame the more risk you can take.
If you are young you should invest conservatively.
The longer the time frame to invest, the more risk you can take on.
38
Junk Bonds
Are super risky but potentional for high return.
Low risk, low return.
Have a rating of BBB.
High risk, low return.
39
Why do companies issue stocks?
Help pay for new projects.
Pay for on going business activitis.
All answers.
To raise funds.
40
Nasdaq
All stocks.
All bonds.
Stocks with the words Nas in them.
Computer based stocks.

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