Year 9 Commerce - Investing

Which of the following is a reason you might have surplus funds to invest?

• Your income is fairly predictable

• You work numerous jobs

• You save money after paying your bills

• All of the above

When discussing investment, what is a stock?

• Partial ownership of a company

• A regular payment

• A type of ingredient in soup

• Government bodies

Which of the following best describes a small amount of gain based upon savings in a bank?

• Interest

• Dividends

• Capital gain

• Equity gain

Which of the following is a financial asset?

• Equipment investments

• Investment in employees

• Cash in the bank

• Investment in property

When someone spreads the load of risk, this is called:

• Dividing

• Diversification

• Denomination

• Difference

Which of the following is the term for regular income from owning stocks?

• Capital Gains tax

• Savings

• Dividends (Returns)

• Salary

Pick the most appropriate response. Financial advisers should:

• be licensed and provide those details to you upon request

• provide sound advice that is in-line with your preferred level of risk

• do nothing without your permission

• all of the above

The market price of a company's share of a common stock is determined by:

• the board of directors

• the stock exchange decision

• the CEO

• individuals buying and selling the stock

What is a risky investment?

• an investment in something completely new with minimal knowledge share

• an investment in something that has fluctuated a lot

• an investment in a failed or previously bankrupt company owner

• any of the above