The Fed and the Treasury
This is the central bank of the U.S.
The Federal Reserve
Bonds are generally considered to be more risky investments than stocks, true or false?
False, less risky
This is the largest equities-based stock exchange in the world by market capitalization:
New York Stock Exchange
This is the most common form of stock ownership (If you get this wrong then I will give you a 0 in this class for the semester)
common stock
This organization is basically the police of financial markets in the U.S.:
The Securities and Exchange Commission (SEC)
Who is more concerned with managing inflation- the Fed or the Treasury?
The Fed
True or false- you will generally be paid more interest if the bond you buy is likelier to default...
True
This benchmark index is comprised of the 500 largest U.S. publicly traded companies:
S & P 500 Index
True or false: Preferred stockholders have voting rights, while common stockholders do not,
False- common stockholders have voting rights, while preferred stockholders do not
This is an investment strategy that involves picking stocks that the rest of the stock market is underestimating:
value investing
The Fed issues treasury securities on behalf of the Treasury, true or false?
True
This is the standard price for a bond, also known as par value:
$1,000
Multiplying the shares outstanding by the current price of a stock will give you the ______________ of said stock.
market capitalization
All stocks have dividends, true or false?
False
A ________ is a comprehensive report filed annually by a publicly-traded company about its financial performance and is required by the U.S. Securities and Exchange Commission (SEC).
10-K
True or False: The Treasury includes the IRS, U.S. Mint, Bureau of Public Debt, and the Department of Homeland Security.
False- it includes the Alcohol and Tobacco Tax Bureau instead of the Department of Homeland Security
Bonds issued by cities (to fund a new park, or new roads, for example) are called ________ bonds.
municipal
Mr. Benz says not to buy only popular tech stocks like Google and Apple and to invest in other industries as well. Mr. Benz is talking about:
diversification
A __________ is a distribution of a portion of a company's earnings, decided by the board of directors.
dividend
I work for Pfizer and I knew a few days before the announcement of a potential Covid-19 vaccine what was going to happen so I bought more stock in my company. This is an example of:
insider trading
How many Federal Reserve regional banks are they?
12 (Wow, maybe this test will be harder than the first???)
T-bonds typically last for ______ years.
30
This is your collection of financial securities (bonds, stocks, etc.) that you buy:
portfolio
If a company is liquidated (goes bankrupt, for instance), then rank the priority from highest to lowest in getting their money back: common stockholders, preferred stockholders, and bondholders
1) bondholders
2) preferred stockholders
3) common stockholders
This man is known as the father of value investing:
Benjamin Graham