Stock Market/Mutual Funds

If assets remain the same what would happen to equity if liabilities decrease?

• Equity would also go decrease
• Equity would remain the same as it is a function of assets.
• Equity would increase.
• Assets would shift to equity

True or False: According to one video we watched it was stated that Warren Buffet believed you should buy a stock making an assumption that the stock market would not open again for 1o years. He meant that an investor should have a long term investing strategy.

• True
• False

True or False: Public perception of the future of a company can be a greater impact on a companies stock prices than their Balance Sheet.

• True
• False

When a company takes their profits and share it with their stock holders this is called a __________?

• Dividend
• Equity Sharing
• ROI

When the assets decrease the total of liabilities and equity   ______________________?

• must remain the same.
• also decreases.
• must go up.
• changes based on current liabilities.

If a company had liabilities of $100 million and equity of $62 million the Assets would be?

• You can't know without looking at the balance sheet.

• It depends on the current liabilities.

• Liabilities plus equity equals assets.

• $38 million

If an individual wanted to diversify their stock holdings to reduce risk they could?

• Buy individual SAFE stocks.
• Buy a mutual fund.
• Only buy gold or silver
• Stay out of the market all together.

ROI means?

• Rate Of Interest
• Retail Only Invesment
• Return On Investment
• Non listed.

A stock is a certificate of ___________________ of a publicly owned company.

• ownership
• a promissory note to pay out equity 
• value that is guaranteed with the backing 
• bond

True or False: If a company sells stock they are taking on a liability guaranteeing the stock holder they will pay them back at a future date.

• True
• False