Personal Finance Ch. 9 - Investing

Saving in a way that earns income is called investing.

• True

• False

A dividend is part of a company's profits that is paid on shares of stock you own.

• True

• False

The most widely known financial newspaper is the NY Post.

• True

• False

In a bad year, growth stocks lose value, which demonstrates the nature of risk.

• True

• False

Insider trading is trading stock based on information that is not available to the general public.

• True

• False

The New York Stock Exchange is responsible for enforcing the federal laws concerning the trading of stocks and bonds in the United States.

• True

• False

All retirement accounts are tax-deferred, which means you don't have to pay taxes until you take the money out when you retire.

• True

• False

Corporate Bonds are more risky than Corporate Stock.

• True

• False

A voting share of stock that does not receive a set dividend is called?

• preferred stock

• common stock

• mutual stock

• transferrable stock

A group of investments owned by many investors is a?

• load

• portfolio

• mutual fund

• rate of return