A key difference between saving and investing is

Saving is for emergencies & goals, investing is for long-term wealth

Saving is for everyone, investing is for the wealthy

Your money is insured when investing, it is not in savings

Investing has a guaranteed return, savings does not

Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)

Your money grows faster when it is compounded

You earn interest on your interest

Fees for compound interest are greater than simple interest

Compound interest is hard to calculate, so fewer use it

The relationship between risk and return can be stated as

Higher risk indicates higher return

Higher risk indicates lower return

Lower risk indicates higher return

No relationship exists between risk and return

How can you make money on stocks? (hint: choose 2 correct answers)

Holding the stock at least 3 years

A diversified portfolio is desirable because

It's a good predictor on rate of return

Why is it important to start investing as soon as possible?

You have more time for your money to compound

You take less risk when you are young, so money will be safe

Investing is an easy way to make quick money

Fees on investments are cheaper when you are younger

An investor bought 40 shares of ABC corporation's stock at $80 a share. The investor receives notice that there has been a 2-for-1 stock split. Based on this info, the investor would own at the moment of the split

80 shares of the stock and the price of each share is $40.

20 shares of the stock and the price of each share is $80

40 shares of the stock and the price of each share is $40.

80 shares of the stock and the price of each share is $80.

George received a dividend from the company in which he is a stockholder. A dividend is

distribution of part of a company's profits.

profit from the sales of some of his shares of stock.

required by the SEC to be given to shareholders.

interest on his shares of preferred stock.

If a business wants to raise capital but not create debt, it can

borrow money from a commercial bank

borrow money from the government

A Neon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of this stock is likely to

not be affected and remain about the same

What is the chief reason corporations issue stock?

to raise money for the corporation

to give consumers ownership in their company

issued by local governments to raise money for roads, bridges, and other construction projects

guarantee high dividends to bondholders

a tax to raise money for city operations

A government report indicated that the use of Pax's aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Pax's stockholders are likely to

sell shares causing the price of the stock to decrease

buy shares causing the price of the stock to increase

not react, causing the price of the stock to remain about the same

The Government agency that regulates the stock markets is called the ________

Securities and Exchange Commission

The Federal Bureau of Investigation

What do stock indices show investors?

A select group of companies and the current state of their stock.

The overall financial health of their owned stocks

The overall rating of each stock market

The markets, every company, everywhere.

What is a mutual Fund?

A collection of investments sold as a package.

A loan an investor makes to a company or government that pays interest over time.

A share of ownership in local government.

An option to purchase something in the future at todays price.

Stock Market/Investing Test

Authored by Cindy Duffy

Life Skills

9th - 12th Grade

CCSS covered

Used 127+ times

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50 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

professional that makes stock trades for their investor

dividend

asset

stockbroker

stockholder

Tags

CCSS.RI.11-12.7

CCSS.RI.9-10.7

CCSS.RL.11-12.7

CCSS.RL.8.7

CCSS.RL.9-10.7

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

to use money in hopes of making a profit

risk

invest

dividend

asset

Tags

CCSS.6.EE.A.2C

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

financial gain, a return on your money

loss

profit

risk

asset

Tags

CCSS.7.RP.A.3

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

a person that trades money for shares/stock in a company

stockbroker

dividend

stockholder

asset

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

dividend

asset

stock

bankrupt

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Usually, when there is high demand (want) for ownership of a particular company or a product made by that company, what happens to the price of that company’s stock?

goes up

goes down

stays the same

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which answer best supports the idea that investing in the stock market is better than putting money in a savings account?

Investing in the stock market is a safer way to earn money

Investing in the stock market gives a better return on your money

Investing in the stock market guarantees investors they will make a profit

Tags

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.11-12.1

CCSS.RL.8.1

CCSS.RL.9-10.1

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Stock Market/Investing Test

professional that makes stock trades for their investor

to use money in hopes of making a profit

financial gain, a return on your money

a person that trades money for shares/stock in a company

When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.

Usually, when there is high demand (want) for ownership of a particular company or a product made by that company, what happens to the price of that company’s stock?

Which answer best supports the idea that investing in the stock market is better than putting money in a savings account?

a group of companies on the stock market such as NASDAQ, DOW Jones, and S&P 500

1-4 letter symbol used to represent a company

A key difference between saving and investing is

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