Debt Investments
Types of Debt Investments
Equity Investments
How to Use the Simulator
100

Unlike equity investments, debt investments don't...

Something similar to "...give ownership in a company."

100

True or false: Treasury bills are a form of municipal bond.

False

100

ETFs reduce single-stock risk exposure because...


Something similar to "...they hold many different stocks, spreading risk across multiple companies."

100

True or false: You can buy bonds on the Investopedia simulator.

False

200

Credit risk refers to...

Something similar to "...the possibility that a borrower will fail to repay debt."

200

The higher the credibility, the _____ the interest rates.

Something similar to "lower"

200

Unlike preferred stocks, common stocks offer...

Something similar to "...voting rights."

200
In the Investopedia simulator, you are restricted to only buying ____, ____, and ____.

Something similar to "stocks; ETFs; options."

300

The par value refers to...

Something similar to "...the total amount the holder will receive at maturity."

300
_____ bonds are the least risky, because _____.

Something similar to "Government; they are literally backed by the government, the most trustworthy entity"

300

Unlike common stocks, preferred stocks offer ____ in the case of ____.

Something similar to "priority dividend payments; liquidation or bankruptcy."

300

True or false: You are able to view the performance of options you've purchased.

True

400

When interest rates rise, ____ bond prices ____ because ____.

Something similar to "old; fall; existing bonds pay less than newer bonds, so they are less attractive."

400

There are two types of corporate bonds: investment-grade and _____. Of the two, _____ are more risky because _____.

Something similar to "junk; junk bonds; they have lower credit ratings and therefore higher default probability"

400

Capital gains are taxed on ____ when _____.

Something similar to "profits from selling investments for more than their purchase price; you sell."

400

Because the market's trading hours are relative to Eastern Time, the market closes at ___ PT.

Something similar to "1:00 pm."

500

Unlike unsecured debt investments, secured debt investments offer ____, which means _____.

Something similar to "collateral; the lender can claim specific assets if the borrower defaults."

500

Certificates of Deposit are of ____ risk because they are ____.

Something similar to "low; FDIC (federally) insured and have a fixed interest rate"

500

The PE ratio calculates _____, which is used to determine _____.

Something similar to "price relative to earnings; stock over/undervaluation."

500

When you buy a stock using a market order, you...

Something similar to "...you purchase it immediately at the current market price."