How does a firm become a public corporation

With an Initial Public Offering (IPO), by selling stocks to individuals.)

Quicker Growth, Higher Return, Higher Risk.

Cost-push inﬂation is

price of business goes up, and that cost is pushed in customers

company that acts as an intermediary between the buyer and seller

purchasing a piece of the company represented by that share.

when investors drive values of an asset higher than they should be

when demand goes up, prices go up higher

is money left over after taxes (net pay)

Speculative Investing

Quickest Growth, Very High Risk, Very High Return

Slow Growth, Safe Investment, Lower Return

loans from investors to companies or government municipalities.

are distributions of profits to shareholders.

What is the difference between a stock and a bond

Stock is a piece of a company, bond is a loan

When the currency loses value over a certain period of time

is what you do with your money after taxes and needs

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Stock Market

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Questions 33

Answers

1
The idea of investing is to earn a higher return above inflation
True
False
2
How does a firm become a public corporation
With an Initial Public Offering (IPO), by selling stocks to individuals.)
By staying private
By allowing only rich people to by there stocks
3
An advantage of buying bonds is fairly predictable returns, in other words, the government will pay you pay you back.
True
False
4
When investing in stocks and bonds you should do no research and put your money wherever you want.
True
False
5
Investing is
Quicker Growth, Higher Return, Higher Risk.
Quickest Growth, Very High Risk, Very High Return
Slow Growth, Safe Investment, Lower Return
6
Cost-push inﬂation is
Governments printing money
when demand goes up, prices go up higher
price of business goes up, and that cost is pushed in customers
7
What is a risk of buying stocks?
You keep all your money
You lose a lot of money
Hi
You make a lot of money
8
A Brokerage Firm is
purchasing a piece of the company represented by that share.
loans from investors to companies or government municipalities.
company that acts as an intermediary between the buyer and seller
Coupons are paid to investors monthly, quarterly, semiannually, or annually
9
Bear Market means the economy is bad and a recession is looming
True
False
10
A Stock is
purchasing a piece of the company represented by that share.
loans from investors to companies or government municipalities.
Coupons are paid to investors monthly, quarterly, semiannually, or annually
company that acts as an intermediary between the buyer and seller
11
A Bubble is
purchasing a piece of the company represented by that share.
company that acts as an intermediary between the buyer and seller
when investors drive values of an asset higher than they should be
loans from investors to companies or government municipalities.
12
Where are Stocks are Bought and Sold
New York Stock Exchange (NYSE)
All of the above
American Stock Exchange (AMEX)
NASDAQ
13
Demand inﬂation is
price of business goes up, and that cost is pushed in customers
when demand goes up, prices go up higher
Governments printing money
14
Bull Market means the economy is great and stock prices are rising
True
False
15
Inflation is good for savings
True
False
16
A short squeeze takes place when a heavily shorted stock moves in the upward direction
True
False
17
HOW DO YOU MAKE MONEY IN THE MARKET?
Long live the king
Buy low, sell high
Sell when it is low
Sell when you don't know what to do
18
Short selling is a type of trade investors make when they believe the value of a stock is going to fall.
True
False
19
When the government prints money, the dollar note gains value
True
False
20
Disposable income
is money left over after taxes (net pay)
price of business goes up, and that cost is pushed in customers
is what you do with your money after taxes and needs
when demand goes up, prices go up higher
21
Speculative Investing
Slow Growth, Safe Investment, Lower Return
Quickest Growth, Very High Risk, Very High Return
Quicker Growth, Higher Return, Higher Risk.
22
what is the number one reason to invest?
to make more money
to save for retirement
to be a nice person
to lose all of your money
23
a saving account is
Quickest Growth, Very High Risk, Very High Return
Slow Growth, Safe Investment, Lower Return
Quicker Growth, Higher Return, Higher Risk.
24
Inﬂation is not a problem because everything rises at the same time and rate
False
True
25
A Bond is
loans from investors to companies or government municipalities.
company that acts as an intermediary between the buyer and seller
purchasing a piece of the company represented by that share.
Coupons are paid to investors monthly, quarterly, semiannually, or annually
26
A saving account is high growth
False
True
27
The stock market is low risk and high reward
False
True
28
A Dividend is
are distributions of profits to shareholders.
purchasing a piece of the company represented by that share.
when investors drive values of an asset higher than they should be
company that acts as an intermediary between the buyer and seller
29
Volatility is a statistical measure of price movement over a period of time.
True
False
30
What is the difference between a stock and a bond
A stock is more expensive than a bond
bond is a piece of a company, stock is a loan
Stock is a piece of a company, bond is a loan
31
Yield is the return on an investment over a period of time
True
False
32
what is inflation
When the dollar gets stronger
When the currency's value increase
When the currency loses value over a certain period of time
Hmmmmmm
33
Discretionary income
is money left over after taxes (net pay)
is what you do with your money after taxes and needs
price of business goes up, and that cost is pushed in customers
when demand goes up, prices go up higher

Stock Market Flashcards | StudBud