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W!SE Review - INVESTING Flashcards | StudBud
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W!SE Review - INVESTING
W!SE Review - INVESTING
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Review of INVESTING - get ready for W!SE certification test
Flashcards
24 cards
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Practice quiz
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Questions
24
Answers
1
A blue chip stock can be described as
A stock with good quality management, products and services
A speculative stock
A stock that pays interest
A preferred stock
2
Sam bought stock for $4,000 and one year later sold it for $1,000. The sale resulted in
Market value
Yield
A capital loss
A capital gain
3
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with
The Securities and Exchange Commission (SEC)
The World Bank
Its Board of Directors
The Federal Reserve
4
If you buy 1000 shares of common stock at $50 a share on 50% margin. This means that
You will pay only $5000 for the shares.
The brokerage firm is lending you 50% of the money.
You will buying 2000 shares.
The brokerage firm will own 50% of the stock purchased.
5
The federal agency that regulates the securities industry is the
Federal Reserve
Securities and Exchange Commission
Department of Commerce
Federal Trade Commission
6
The price of the Candy Corporation stock will generally increase when there is
A general rise in interest rates
Declining investor confidence
A group of bullish investors in the health sector
Positive news about corporate earnings
7
If there is a 2-for-1 stock split and you own 40 shares @ $80 each. When it splits, you own
40 shares of the stock and the price of each share is $40.
20 shares of the stock and the price of each share is $80.
80 shares of the stock and the price of each share is $80
80 shares of the stock and the price of each share is $40.
8
Which of the following best describes diversification?
Putting all your investments in two financial instruments
Reducing risk by investing in different types of securities
Avoiding risk by investing in blue-chip stocks
Investing in different types of bonds
9
What is the largest equities market in the world?
New York Stock Exchange (NYSE)
Over-the-counter (OTC) market
NASDAQ market
American Stock Exchange (AMEX)
10
"Don't put all your eggs in one basket" describes what investment strategy?
Diversification
Return on investment
Liquidity
Pooling
11
You see BAD NEWS on the evening news about DEW Corp. The price of DEW stock is likely to
Remain unchanged
Increase
Decrease
Fluctuate wildly
12
The interest earned on United States Series EE Savings Bonds is
deducted at the time of the bond's purchase
exempt from state and local taxes
equal to the money paid to purchase it
paid in a lump sum when the face value bond is reached
13
Jennie owns Disney shares and cannot attend the annual stockholder meeting. She can
Vote by mail or online through a proxy
Plan to attend the stockholders meeting next year
Assign her stock voting rights to her husband
Not vote unless she is at the meeting
14
Investors select blue chip stocks because they
Can avoid financial difficulties
Have a reputation for quality and usually pay dividends
Are listed on the American Stock Exchange
Are large public corporations
15
You set aside money with the idea of having additional funds to use in the future. You are
Diversifying
Saving
Setting goals
Making money
16
When the market has a steady decline in stock prices over a period of time, it is known as a
Fluctuating market
Bull market
Bear market
Volatile market
17
Shares of stock are also known as
Money market funds
Equities
Bonds
Debts
18
If you choose to reinvest your stock dividend, this means that dividend will go toward buying
stocks that are similar to those already owned
more of the same stock
preferred stock in the corporation
bonds in the corporation
19
Buying a treasury bill (T-bill) is best for investors who are looking for
a secure, low risk investment.
a higher yield than corporate bonds offer
a place to invest between $100-$500.
an investment that matures in 10-30 years
20
A pharmacy is to drugs as the American Stock Exchange is to
Interest
Stock advisors
Mutual funds
Securities
21
You purchase a small house with 3 rental apartments. Your profits may be lower if
A tenant in an apartment decides to paint the hallways.
The mortgage on the house is paid off.
Taxes on the house are lowered.
One of the apartments is not rented.
22
Municipal Bonds are
issued by local governments to raise $$ for local projects
issued by investment firms
guaranteed to pay high dividends to bondholders
a tax to raise money for city operations
23
You own some stocks, bonds & two mutual funds. All of these together are called your
Retirement holdings
Investment package
Investment portfolio
Net worth
24
You sell your ABC stock for a higher price per share than you paid for it. You have a
Capital surplus
Capital loss
Capital gain
Dividend
