Stocks
What does a Stock represent?
A. A loan you make to a company that they must pay back
B. A percentage of ownership of a company including assets and profits
C. A contract for a company's goods or services
D. Stocks are just tools used by investors to make money
A percentage of ownership of a company including assets and profits
Which represents ownership in a company?
Stock
Why do people usually invest in mutual funds?
A. Because they want to build their own company
B. Because they want to invest in a specific company
C. Because they want an easy way to make a diverse investment
D. Because they are an active trader who wants to day-trade
Because they want an easy way to make a diverse investment
What is Preferred Stock?
A. Stock that gets paid dividends first
B. Stock that lets its owners vote in shareholder meetings
C. Stock that is always worth the most
D. Stock that is only owned by managers
Stock that gets paid dividends first
Which pays regular interest?
Bonds
What do investors call the stocks, bonds, and cash that make up a mutual fund?
A. Assets under management
B. Assets under management fee
C. Mutual fund shares
D. Net present value
Assets under management
What is an IPO?
A. When a company first sells shares of stock to the public
B. When the government creates shares on a Stock Exchange
C. A new Apple product
D. When a company gets angry at its shareholders and has a meeting
When a company first sells shares of stock to the public
Which are sometimes issued by the government?
Bonds
How are most mutual funds traded?
A. One investor to another
B. The fund manager selling new shares to new investors
C. On a stock exchange
D. Mutual funds are rarely traded
On a stock exchange
The company Apple has how many shares outstanding?
A. 5,575 shares
B. 55,750 shares
C. 5,575,000 shares
D. 5,575,000,000 shares
5,575,000,000 shares
Which never expires and can provide profit forever?
Stock
Which is one major advantage of Mutual Funds?
A. They have very low fees
B. You have a fund manager so you do not need to constantly monitor your investments
C. You can pick the companies you invest in
D. You get more dividends than if you held the underlying stock
You have a fund manager so you do not need to constantly monitor your investments
Where were stocks first created?
A. Egypt
B. Rome
C. London
D. New York
Rome
When you hold this until its maturity date you receive the face value and any interest that has accrued since the last interest payment.
Bond
What is a disadvantage of Mutual Funds?
A. It is hard to diversify your portfolio using mutual funds
B. It costs a lot more in commissions than buying individual stocks
C. Mutual funds can have maintenance fees regardless of fund performance
D. Mutual funds are not actively managed by a professional
Mutual funds can have maintenance fees regardless of fund performance