Stock Market Game
How long does the game last?
10 weeks
T/F: A person with a long time horizon will generally have a more conservative portfolio.
False.
Stocks are ________ risk than bonds.
Higher
A municipal bond is offered by...
State or local governments.
What is a pooled fund?
Any type of fund where many investors combine their money to invest in stocks, bonds, or other assets.
How much money do you begin the game with?
$100,000
Define "compounding interest."
Interest that is earned upon both the principal and the accumulated interest from previous periods.
Two synonyms for a stock are...
Equities and shares.
What is a bond?
A type of loan where the issuer pays the lender interest at set time intervals, then pays back the principal once the bond has matured.
A mutual fund is controlled by a...
Money or fund manager.
How many stocks/shares do you need in your account by Halloween?
30
Why do people choose to invest?
Because they expect to make additional income from their initial investment (the principal).
This digital marketplace for stock exchanges was founded in 1971.
The NASDAQ
Name one bond rating agency.
Moody's, Standard and Poor's, or Fitch.
A type of pooled fund that is able to be traded on the stock exchange is known as...
An exchange-traded fund, or ETF.
How much do you need to have invested by Halloween?
$90,000
How is compounding interest related to time?
The longer your time horizon, the more money you can make (and it will grow exponentially, not steadily!)
A sum of money paid out to a shareholder at regular intervals is called a...
Dividend.
T/F: A highly-rated bond is general considered to be low-risk, low-reward.
True.
Investing in varieties of pooled funds is a great way to create a strong portfolio, meaning that your investments are...
Diversified.
At most, you can invest ___% of your total equity in one company or pooled fund.
20
What is the formula for calculating compound interest?
P[(1+i)n]
This type of stock allows for holders to be paid first in the event of a bankruptcy or liquidation, but does not give the holder voting privileges.
Preferred stock.
A highly risky and lower-rated bond is also known as a...
Junk bond
Give an example of systematic risk.
The Great Recession; natural disasters; war and conflict