Investing Flashcard

Front

The two leading stock exchanges in the United States are

Back

New York Stock Exchange and NASDAQ

Front

_______ describes the stock market when prices have been steadily rising and people are optimistic?

Back

Bull

Front

A market where existing conditions are driving stock prices down is known as a bear market.

Back

Bear

Front

What is Kelly's capital gain if she purchased 5 shares of Nike stock for $70 a share in April 2012 and sold them for $90 per share in April 2015?

Back

$100

Front

You own stock in Company ABC, which has recently launched a groundbreaking product that is receiving positive reviews. Their stock price has surged in the last few weeks. What investment strategy is most likely to be successful in this scenario?

Back

Hold the stock of Company ABC

Front

_____ is an investment strategy in which you spread your investment dollars among different sectors, industries, and securities to balance or reduce the level of risk?

Back

Diversification

Front

What is the best description of the relationship between risk and return? Options: The higher the risk, the lower the return; The lower the risk the greater the potential for return; Buy high, sell low; The higher the risk, the greater the potential for return

Back

The higher the risk, the greater the potential for return

Front

A ______ account typically earns the lowest rate of return?

Back

savings

Front

A ______ is a low-risk investment option that requires your money to be held for a specified period of time?

Back

Certificate of Deposit (CD)

Front

Company profits that are distributed to shareholders during profitable times are called dividends

Back

dividends