EPF Investments Unit

A _____________ can hold either stocks or bonds or both and is used to diversify your investments

• government bond

• parent company

• mutual fund

• real estate

Which would be considered the highest risk investment type?

• stock

• mutual fund

• bond

• money market fund

If I have a 401k (company sponsored retirement account) at a company, when I leave the company I lose all my investments

• True

• False

What type of stock has preferential treatment to dividends and in time of bankruptcy?

• common

• options

• preferred

• short selling

Harvey has $100,000 invested at Robinhood. He is charged 3.5% of his investment in annual fees. What is the dollar amount of his investment fee?

• $350

• $35

• $35,000

• $3,500

What is the chief reason corporations issue stock?

• To raise money for the corporation

• To give consumers ownership in the company

• To secure tax advantages

• To help the economy

When John bought a Microsoft bond, he was:

• borrowing money from Microsoft

• Buying part ownership of Microsoft

• Investing in a liquid instrument

• Lending money to Microsoft

David bought stock for $4000 and one year later sold it for $1,000. The sale resulted in a:

• price earning

• market value

• capital loss

• yield

Why does a corporation issue bonds?

• To raise money for expansion or other company operations

• To expand ownership of the corporation

• To comply with Securities and Exchange Commission requirements

• To keep from being bought by another corporation

Which financial product may pay a dividend?

• savings account

• money market account

• certificate of deposit

• common stock