Investing: What Do You Know?

What is a Large Cap Stock?

• A stock of a Fortune 500 Company

• A stock selling for over $100/share

• A stock of a company older than 30 years old

• A stock with market capitalization over $10 billion

Which of the following bonds is considered to be a risk-free investment, issued by the U.S. Treasury with a maturity of more than 10 years?

• Municipal Bond

• Treasury Bond

• Mortgage Bond

• High-Yield Bond

The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI) is...

• Rate of Return

• Rate of Investment

• Rate of Profit

• Rate of Loss

A financial asset, such as a stock or a bond, that can be bought and sold in a financial market is called...

• Stock

• Money

• Security

• Financial

Which of the following is NOT a retirement account?

• 401(k)

• 403(b)

• Roth IRA

• Roth 529

An investment in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date

• Stock

• Bond

• CD

• Savings Account

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for is...

• Capital Gain

• Capital Profit

• Profit

• Income

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk...

• Mutualization

• Photosynthesis

• Gambeling

• Diversification

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis...

• Bonus

• Dividend

• Capital Gain

• Rate

The practice of putting a fixed amount into an investment over a period of time, regardless of the price of that investment

• Steady Dollar Investing

• Buy and Hold

• Buy Low, Sell High

• Dollar Cost Averaging