Personal Finance Review

Earnings on stocks that are given to stockholders are called

• blue chip stocks

• over the counter stocks

• growth stocks

• dividends

Which of the following is NOT a stock index?

• DOW JONES

• S & P 500

• NASDAQ COMPOSITE

• New York Stock Exchange

A bull market is a sign of rising stock prices

• YES
• NO

—Buying little pieces of a whole lot of different companies

• Stocks
• Bonds 
• Mutual funds
• T-bills

This is considered an IOU and the higher the interest rate on this, the more risky it is

• Bond
• T-bill
• Money market
• Stocks

The relationship between risk and return in investing can be stated as:

• higher risk indicates lower potential return
• higher risk indicates higher potential returns
• lower risk indicates higher potential return
• No relationship exists between risk and return

Tags

CCSS.HSS.MD.B.5B

A diversified portfolio is desirable because it...

• Increases the risk/return ratio
• Limits investors' choices to inly one or two investment tools
• Indicates an investor is a good predictor of the return an investment will have
• Decreases risk by investing money in a variety of investment tools

What is a stock?

• A loan an investor makes to a company or government that pays interest over time.
• A share of ownership in a company
• A collection of investments sold as a package.
• An option to purchase something in the future at todays price.

What is the primary reason for a company to issue stock?

• The stocks help investors earn a higher rate of return
• To raise money to grow the company
• To distribute the risk of bankruptcy across more investors
• To increase greater awareness of the company

Profit from selling stock at a higher price than one paid for it.

• Dividend
• Capital Loss
• Capital Gain
• Stock Option

Tags

CCSS.7.RP.A.3