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