Investments Quiz #1 Review

A list of your investments

• Portfolio
• Bank Statement
• Investment Statement

You can start investing with a small amount of money.

• True
• False

Shares of a company that do NOT guarantee a dividend, but do have voting rights

• Preferred stock

• Common stock

• Treasury stock

The increase or decrease in the value of a stock or other asset.

• call risk

• credit risk

• capital gain (appreciation) or loss

• face value (par)

share of company's earnings/profit paid to shareholders

• maturity
• bond premium
• call
• dividend

An investment earning 6% interest is expected to double in how many years?

• 12
• 6
• 2
• 4

Why is compound interest more advantageous than simple interest?

• It’s more difficult to calculate, so fewer people use compound interest, making more profits for those who do.
• Compound interest accumulates very rapidly, so you only have to save for 3 years or fewer to earn far more money.
• Compound interest is attached to the stocks with the highest risk, so you get the highest interest on them
• In compound interest, you earn interest on not only your principal, but also on the interest you’ve already made.

The chance of loss.

• Stock
• Reward
• Risk
• Real Estate

Technology stocks are typically listed on which exchange?

• NYSE
• OTC (Pink Sheets)
• NASDAQ
• Tokyo

Which stock exchange is the largest and strictest?

• NASDAQ
• New York Stock Exchange
• American Stock Exchange
• Dow Jones