the abbreviation for stocks and mutual funds

When people buy stock on a stock market

the corporation receives money for capital investments

Stocks are different from bonds in that

stocks represent ownership while bonds represent loans

In order to reduce the chance of loss in the stock market people can

diversify their stock portfolio

when your money builds on the principal and interest

fee to pay for fund advertising

What is a stock dividend?

yearly or quarterly payment/share of stock to stockholders

What are the three rules for building wealth over the long term?

start early, buy and hold, and diversify

ability to turn investment into cash

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Personal Finance

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Questions 24

Answers

1
Which of the following is the least risky investment?
US Treasury Bonds
corporate bonds
mutual funds
stocks
2
A stock symbol is
the asterisk that indicates a high performing stock
the ratio for price divided by earnings
the daily change in cost of stocks
the abbreviation for stocks and mutual funds
3
Which of the following is a stock exchange?
IPO
AAA
DJIA
NYSE
4
The investment with the greatest liquidity is
a certificate of deposit
a savings account
a bond
a mutual fund share
5
If a savvy investor were given 10,000 to invest and wanted to triple his money in 30 years
invest in mutual funds
invest in savings bonds
invest in CDs
invest in a savings account
6
If a savvy investor were given 5,000 to invest and may need the money immediately, invest in
stocks
mutual funds
savings account
CDs
7
Which would be considered the savings alternative with the lowest risk and the lowest reward
bonds
real estate
certificate of deposit
stocks
8
Using the rule of 72 at a compound interest rate of 10% how many years until double your money?
7.0
10
7.2
2.7
9
People buy stock because
the government encourages them to buy stock
they are guaranteed interest payments each year
they expect to earn a return
there is no chance of loss
10
Which is not one of the top three stock markets in the US
ESPQ
AMEX
NASDAQ
NYSE
11
When people buy stock on a stock market
the corporation receives money for capital investments
the people buying the stock receive money
the corporation loses money
the people selling stock lose money
12
Stocks are different from bonds in that
stocks represent ownership while bonds represent loans
stocks mature and bands do not
stocks guarantee a certain rate of return and bonds do not
stocks have ratings while bonds do not
13
In order to reduce the chance of loss in the stock market people can
invest into several companies in the same industry
invest in up and coming businesses
diversify their stock portfolio
invest heavily in one company
14
What is compounding
when your money builds on the principal
when your money builds on the principal and interest
when you make money
when your money builds on the interest
15
A 12b-1 fee is a
management fee
fee to pay for fund advertising
fee to pay the fund's brokerage commission
sales commission
16
50 in savings for 1 year at an interest rate of 10% earns how much interest in a year?
4
2
5
3
17
Which is not a place where I could buy or sell a stock
internet provider like E-Trade
floor of the stock market
a bank
stock broker
18
Which is NOT a type of bond?
municipal
corporation
government
mutual fund
19
Which of the following is an example of investing?
putting money into a piggy bank at home
buying a US Savings Bond
buying groceries for your family
saving spare change and using it to buy snacks
20
What is a stock dividend?
yearly or quarterly payment/share of stock to stockholders
the price for which the stock is sold in stock markets
the price for which the stock is sold to investment bankers
a daily payment to a stockholder
21
What are the three rules for building wealth over the long term?
start early, buy and hold, and diversify
short buy, short cover, and buy on the margin
seek liquidity, loans, and limits
trade early, trade often, trade confidently
22
Liquidity is
turning rock into water
how easy it would be to make an investment liquid
cash
ability to turn investment into cash
23
What does a full-service broker do that a discount broker does not do?
makes transactions in the over the counter market
offers investment advice
make transactions in organized financial markets
charges a low commision
24
initial investment is 300 and the annual interest rate is 10% how much do I have at end of year
303
60
30
330

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