Financial Literacy

Question 1

known as "shares" or "equity") is a type of security that signifies proportionate ownership in the issuing corporation

Accepted Answer

Stock

Question 2

levy assessed on the positive difference between the sale price of the asset and its original purchase price

Accepted Answer

Capital Gains Tax

Question 3

distribution of reward from a portion of the company's earnings and is paid to a class of its shareholders

Accepted Answer

Dividend

Question 4

a holding company for a multitude of businesses. It's run by chairman and CEO Warren Buffett

Accepted Answer

Berkshire Hathway

Question 5

used by investors and analysts to determine the relative value of a company's shares in an apples-to-apples comparison.

Accepted Answer

Price to Earnings (P/E Ratio)

Question 6

financial market of a group of securities in which prices are rising or are expected to rise

Accepted Answer

Bull

Question 7

represents a loan made by an investor to a borrower (typically corporate or governmental

Accepted Answer

Bond

Question 8

is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.

Accepted Answer

S & P 500

Question 9

Form that individual taxpayers use to file their annual income tax returns

Accepted Answer

1040

Question 10

describes the rise and fall in production output of goods and services in an economy.

Accepted Answer

Business Cycle

Question 11

condition in which securities prices fall 20% or more from recent highs

Accepted Answer

Bear

Question 12

The production of goods and services is based on supply and demand in the general market

Accepted Answer

Capitalism

Question 13

Investing scam promising high rates of return with little risk to investors.

Accepted Answer

Ponzi Scheme

Question 14

can be thought of as “interest on interest,” and will make a sum grow at a faster rate

Accepted Answer

Compound Interest

Question 15

U.S. government agency responsible for the collection of taxes and enforcement of tax laws

Accepted Answer

IRS

Questions 15