Definitions
A share in the ownership of a company, representing a claim on part of the company’s assets and earnings is called what?
What is Stock
What is the simple interest on $1,000 at 5% per annum for 3 years?
What is 150
Gain from Investment−Cost of Investment/Cost of Investment is what ratio?
What is Return on Investment (ROI)
A portion of a company’s profits paid out to shareholders is called what?
What is a dividend
If the simple interest is $240 at 6% per annum for 2 years, what is the principal?
What is 2000
Net Income−Dividends on Preferred Stock/ Average Outstanding Shares Net Income is what?
What is earnings per share
A collection of financial investments like stocks, bonds, and cash equivalents is called what
What is a portfolio
If $500 earns $75 in 3 years, what is the annual interest rate?
P/E Ratio
The process of dividing investments among different asset categories, such as stocks, bonds, and cash is called what?
What is Asset Allocation
If $800 earns $160 in simple interest at 4% per annum, how long was it invested?
What is 5 years
Annual Price Per Share/Price Per Share
What is dividend yield?
Borrowing a security to sell it with the intention of buying it back later at a lower price for profit is called what?
What is short selling
What is the total amount after 4 years if $1,200 is invested at 7% simple interest?
What is 1536
This one is kinda hard so the hint is that is for mutual funds.
total assets - total liabilities/number of outstanding shares
What is Net Asset Value (NAV) (for mutual funds)