The Stock Market Game: Selecting Your Investments Pre-Test

The Dow Jones Industrial Average represents:

• a stock index that represents 30 companies
• the most popular companies on the NYSE
• the 100 largest companies in America

An industry is composed of:

• multi-national competitors
• corporations with similar products and services
• industrial businesses working together

If a share of a mutual fund cost $9 a year ago and costs $15 today, it means the NAV increased how much per share?

• 33%
• 20%
• 66%

To be diversified, a portfolio must hold bonds as well as stocks.

• True
• False

Large cap, mid caps and small caps are descriptions of:

• mutual funds
• company size and market value
• stock market exchanges

The S&P 500, the Nasdaq and the Russell 2000 are examples of

• a stock report
• stock exchanges
• stock indices

Dividing a stock's current price per share by the issuing company's earnings per share results in

• the profit margin of the company
• the price earnings ratio
• the stock's current price

Lin has $4,000 in Dell Computer stock, $2,500 in BioMed stock, $1,500 in 1stBank stock and $2,000 in a government bond. A broker tells Lin that her portfolio is not diversified enough. Lin should probably:

• sell some of her stock and buy a mutual fund
• sell the government bond and buy a mutal fund
• sell the Dell Computer stock and buy another bond

If you know that the ticker symbol for Microsoft is MSFT, on which exchange is it listed?

• NYSE
• AMEX
• NASDAQ

Stocks, bonds and cash are all part of a(n)

• initial public offering
• industry sector
• financial growth plan