Investing

Stocks represent ownership in a corporation.

• TRUE
• FALSE

People who invest in stocks cannot lose their money.

• TRUE
• FALSE

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

• 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

Why would someone buy a bond instead of a stock?

• It is a less risky investment
• It can yield a higher return on investment
• To have ownership in a company
• To receive dividend payments

A zero-coupon bonds pays interest 

• periodically
• at the maturity date
• at the time of purchase
• never

Tags

CCSS.HSF-IF.C.7C

What is a bond? 

• a certificate of ownership in a corporation, with the right to a share of the earnings 
• a certificate representing a loan from an investor to a corporation or government entity 
• a payment from an investor to a corporation for the rights to future profits 
• a group of stocks sold together for a set price 

When stockholders sell their stock, who receives the money from the sale? 

• The Corporation
• The stockholder
• The government
• Stockholders who own the same stock

One way people can earn money from stocks is by...

• selling the stock for the same price as the price they paid for the stock.
• buying stock from an investment banker
• selling the stock for a lower price than the price they paid for the stock.
• selling the stock for a higher price than the price they paid for the stock