What is a Stock?

What is the Stock Market ?

Investing to Make Money Go to Work for You

Multiple Choice

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies & goals, investing is for long-term wealth

Multiple Choice

Learning to invest is like riding a bike.

• True

• False

Multiple Choice

Buying Shares of Stock means you have

• ownership in a company
• rental in a company
• partnership in a company
• borrowing from a company

Multiple Choice

Which would be considered the highest risk investment type?

• Stock

• Mutual Fund

• Bond

• Money Market Account

Multiple Choice

The relationship between risk and return can be stated as

• Higher risk indicates higher return

• Higher risk indicates lower return

• Lower risk indicates higher return

• No relationship exists between risk and return

Multiple Select

How can you make money on stocks?

• Buy them when the price is high and sell when the price is low

• Interest

• Dividends

• Holding the stock at least 3 years

Multiple Choice

A _____ is a loan given to an organization while a _______ is partial ownership in the company.

• bond, ETF

• stock, bond

• bond, stock

• ETF, bond

Multiple Choice

Andy bought 5 shares of a company for $10. Later, he sold all 5 shares for $15. What was his profit/loss on the stock?

• Profit of $5

• Loss of $5

• Profit of $25

• Loss of $25

Multiple Choice

A diversified portfolio is desirable because

• It limits investment choice

• It's a good predictor on rate of return

• It increases risk and return

• It decreases risk

Multiple Choice

Why is it important to start investing as soon as possible?

• You take less risk when you are young, so money will be safe

• You have more time for your money to compound

• Investing is an easy way to make quick money

• Fees on investments are cheaper when you are younger

Multiple Choice

A holder or owner of stock in a company or corporation.

• stock market
• shareholder
• portfolio
• industry

Multiple Choice

One way stockholders make money is by selling their stock for more money than they paid for it.

• TRUE
• FALSE

Multiple Choice

The possibility of losing some or all of a particiular investment.

• risk
• index
• industry
• profit

Multiple Choice

Which of the following is defined as, "Positive/ambitious market conditions."

• Bull Market

• Bear Market

Multiple Choice

Which of the following is defined as, "Skeptical/negative market conditions."

• Bull Market

• Bear Market

Multiple Choice

Stocks issued by large respected companies.

• Growth Stocks

• Income Stocks

• Blue Chip Stocks

• Cyclical Stocks

Multiple Choice

Stocks valued around $1-$10.

• Defensive Stocks

• Large Cap Stocks

• Small Cap Stocks

• Penny Stocks

Multiple Choice

Why would a company need to issue stock?  

• To increase its' customer base.
• To raise money.
• To stop the government from regulating it.
• To show customers that it's successful.

Multiple Choice

Apple is releasing a new iPhone that is predicted to change the cell phone world.  Millions of people have pre-ordered it.  What do you think will happen to their stock?

• It is likely to go up.
• It is likely to go down.

Multiple Choice

You have $250 that you are willing to invest in Apple's stock.  If Apple's stock is selling for $113.05 a share, how many shares could you buy?

• 1
• 2
• 3
• 4

Multiple Choice

Over the course of the day, the head of Apple's company is imprisoned for not paying his taxes.  What do you think will happen to Apple's stock?

• It will go up.
• It will go down.

Multiple Choice

A company that sells stock on the stock market.

• private company
• market capitalization
• public company
• stock market

Multiple Choice

If you want you purchase a stock, you have to go through a stock broker 

• True
• False

Multiple Choice

A company owned by families or a small number of investors and do not issue stock to the public.

• public company
• industry
• private company
• portfolio

Multiple Choice

The highest price and lowest price of a stock over a 52 week period.

• beta
• profit
• volume
• 52 week range

Multiple Choice

A sum of money paid to shareholders of a corporation out of its earnings.

• index
• dividend
• profit
• invest

Multiple Choice

Groups of companies that are related based on their primary products or services.

• industry
• stock
• index
• public company

Multiple Choice

The total holdings of stock by a financial institution or a private investor.

• index
• portfolio
• stock market
• industry

Multiple Choice

A holder or owner of stock in a company or corporation.

• stock market
• shareholder
• portfolio
• industry