Investing Part I: Vocabulary & Concept Review

Front

A bull market is characterized by:

Back

Rising stock prices and investor optimism

Front

A company pays shareholders a portion of its profits in the form of:

Back

Dividends

Front

What is the primary risk of investing in stocks?

Back

The potential for losing money if the stock price declines

Front

The New York Stock Exchange (NYSE) is an example of:

Back

A stock exchange where investors buy and sell stocks

Front

The Nasdaq is known for listing:

Back

Mostly technology and growth companies

Front

True or False: A bear market occurs when stock prices are steadily increasing.

Back

False

Front

True or False: A shareholder is someone who owns shares of a company's stock.

Back

True

Front

True or False: The rate of return is the percentage of money gained or lost on an investment over time.

Back

True

Front

True or False: Investing is completely risk-free if you choose the right stocks.

Back

False

Front

True or False: Inflation reduces the purchasing power of money over time.

Back

True