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MoneyPower - Investing Flashcards | StudBud
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MoneyPower - Investing
MoneyPower - Investing
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Investing
Flashcards
20 cards
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Questions
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Answers
1
A person invests in a small house that has 3 rental apts. Profits may be lower than expected if
one apt. is not rented
tenant paints the hallways
taxes are lowered
mortgage is paid off
2
A company decides not to distribute dividends - the money that remains in the company is called
retained funds
retained earnings
capital earnings
held-back funds
3
Interest earned on the U.S. Series EE Savings Bond is
exempt from state and local taxes
equal to the money paid for the bond
deducted at the time of purchase
paid in a lump sum at the maturity date
4
All of the following are considered low-risk investments EXCEPT
penny stocks
CD's
savings bonds
savings accounts
5
Buying different investments at different levels of risk is called
diversification
differentiation
formation
proclamation
6
The generic term to describe where stockbrokers buy/sell stock is
farmer's market
income market
stock market
flea market
7
Mutual funds are
an investment that holds diversified instruments
investments that are all high-risk
investments that are all low risk
8
The act of purchasing assets with the goal of increasing your future income is called
inquiring
investing
negotiating
bartering
9
When a company decides to sell stocks to the public (IPO), it is called a/an
Initial Public Offering
Income Profit Offering
Initial Private Offering
Income Public Offset
10
ABC Corp. does a stock split. If you previously owned 40 shares @ $80.00/share, after the split
you own 80 shares @ $160/share
40 shares @ $40.00/share
you own 80 shares @ $80.00
you own 80 shares @ $40.00/share
11
A pharmacy is to drugs as the stock exchange is to
securities
mutual funds
stock advisers
interest
12
When a person's stock earns a $2 per share dividend & decides to reinvest that dividend, the $2
goes toward purchasing mutual funds
goes toward purchasing company bonds
goes toward purchasing preferred stock
goes toward purchasing more of the same stock
13
Buying a treasury bill (T-bill) is best for investors who are looking for
a safe, secure investment
a high risk, high profit investment
part ownership of the Federal Reserve
a volatile investment
14
The type of stock that is generally NOT affected by the economy is
defensive stock
income stock
cyclical stock
blue-chip stock
15
Two types of stock are
market/profit
asset/dividend
common/preferred
dividend/marginal
16
What is the largest equities market in the world?
Equity Capital
The Bull Market
New York Stock Exchange (NYSE)
Nasdaq
17
The responsibility of the broker on the trading floor is to
collect taxes on stock sales
sell all stock at a profit
represent the client
regulate the price of the stock
18
Buying common stock "on a 50% margin" means that you
got the stock on sale at 50% off
borrowed 50% of the money to buy the stock
donate 50% of your profits to charity
50% of your stock may not earn a profit
19
Before the Kiss Corporation can issue stocks or bonds, it must register the issue with
the Securities & Exchange Commission
the Federal Communications Commission
the Federal Reserve
the NYSE
20
A broker buying/selling a lot of stocks within your portfolio for personal financial gain is
brewing
stirring
chuckling
churning
