Investing, Stocks, Bonds, and Mutual Funds

Stocks represent ownership in a corporation.

• TRUE
• FALSE

People who invest in stocks cannot lose their money.

• TRUE
• FALSE

Mark bought 100 shares of Intel stock. Each share sold for $35.50. If no fees were involved, Mark paid $3,550 for the shares.

• TRUE
• FALSE

The price people pay for a stock is called a dividend.

• TRUE
• FALSE

People who own stocks are guaranteed a return on the money they have invested in stocks.

• TRUE
• FALSE

The only way stockholders make money is through dividend payments while they own the stock.

• TRUE
• FALSE

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

• TRUE
• FALSE

Stockholders can reduce the risk on their stock investment by diversifying their portfolios.

• TRUE
• FALSE

The New York Stock Exchange is the only place where people can buy and sell stocks.

• TRUE
• FALSE

Which of the following is the LEAST risky investment?

• corporate bonds
• stocks
• U.S. Treasury bonds
• mutual funds