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General investing & info on stock Flashcards | StudBud
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General investing & info on stock
General investing & info on stock
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Questions
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Answers
1
"Business Risk" is high when you put your investment money into one or two stocks.
False
True
2
The only way for people to make money on real estate is to buy the property for a low price and sell it for a higher.
False
True
3
A true capital gain or loss is experienced when the value of a stock goes up or down.
True
False
4
When a value of stock share has recently been agreed upon by the buyer and seller, it sets the current price.
False
True
5
There are small, medium and large cap companies that have stock being traded on the exchange.
False
True
6
You must pay for stock information such as the current price, P/E ratio and Dividend Yield.
True
False
7
The most common stock purchase is of "common" stock.
True
False
8
We talk about economic indicators in C&FM so students will know how to day-trade, buy and sell stocks daily.
False
True
9
Bonds are when you own a sliver of a company.
True
False
10
People save instead of investing when what?
they want 8 to 10% returns
they are willing to take on risk
their objective is longer term
they are concerned about retention not growth
11
People who day-trade, buy and sell based on indicators and indices, most often beat the market.
False
True
12
The best economic indicator that is truly indicative of future growth in our economy is which?
LEI (Leading Economic Indicators)
Consumer Confidence Index
CPI (Consumer Price Index)
GDP (Gross Domestic Profit)
13
Investments are insured by the government.
False
True
14
Stockbrokers buy and sell shares for an investor when the investor pays a fee.
False
True
15
Market Capitalization is what?
when a business sells goods not services
is the maximum # of shares that can be sold to the public
when a product enjoys a market share
is price per share X shares outstanding
16
Stock are all these EXCEPT which?
equity
an investment asset
lending your money to a company
part of ownership of a company
17
Facebook's IPO was a success.
False
True
18
Stock prices don't always match stock value.
False
True
19
Before companies issue public stock, they must have
profit
a Chief Operating Officer
a prospectus
a ticker symbol
20
Active Income is the money you collect from receiving rent payments from your properties.
False
True
21
One should look at economic indicators for first time purchases of stock and years later when planning to sell.
False
True
22
All are good things to look for in a company that you're considering purchasing stock in, EXCEPT
low debt
low credit score
undervaluation (high dividend yield)
consistent EPS (earnings per share)
23
All companies sell stock to the public.
False
True
24
People buy stocks when what?
they want the value to grow
All of these
they want dividend income
they have time to take on some risk
25
When you own fewer shares of common stock you
are not part owner
vote with equal weight to your vote
don't vote
vote thru proxy
26
Portfolio Diversification is all EXCEPT
a strategy to reduce business risk
Changing %'s of money in various market cap levels
spreading dollars into diff industry stocks
a figure in a prospectus
27
I.P.O. stands for
interest plus original principle
international public option
initial public offering
investment potential opportunity
28
All are good things to look for before buying stock EXCEPT
high debt
Consistent EPS (earnings per share)
High dividend yield
consistently strong management team
29
The main theme in the book
Rich Dad, Poor Dad
is?
you only need an 8th grade education
your home is an asset
thinking about money is evil
wealth is created when assets make money
30
Because there can be a lot of market noise, investors try to focus on all EXCEPT
The intrinsic value of the company
Consistent management and processes
The innovation of the company
Media reports exclusively
31
Small value shareholders have equal voting rights along with bigger valued shareholders in company decisions.
False
True
32
All are bank savings vehicles EXCEPT
CDs (Certificates of Deposit)
Regular Savings Account
bonds
Money Market Accounts
33
The following are all U.S. stock indices EXCEPT which?
The Dow Jones
NASDAQ
S & P 500
Ameritrade