Building Your Future

Which of the following is not a main investment option?

• Bonds

• Mutual Funds

• Stocks

• Comic Books

Which of the following is NOT a stock index?

• DOW JONES

• S & P 500

• NASDAQ COMPOSITE

• P/E RATIO

What is a stock?

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

• A share of ownership in a company

• A collection of investments sold as a package.

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

What is the primary reason for a company to issue stock?

• The stocks help investors earn a higher rate of return

• To raise money to grow the company

• To distribute the risk of bankruptcy across more investors

• To increase greater awareness of the company

This is where your orders to buy or sell stock are sent and carried out

• Stock Exchange

• Brokerage Firm

• Stock Meeting Place

• Money Exchange

Spreading your investments around to inrease financial security

• Risk assessment

• Diversification

• Stocks, bonds & cash

• Liquidity trap

Ownership in a publicly traded corporation

• CD-certificate of deposit

• Money Market

• Treasury bill

• Stock

The number of years it takes for your money to double

• 72 Rules

• Rule of 72

If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?

• $10

• $40

• $20

• -$20

When you buy stock, you are actually buying a piece of the company and becoming part owner

• True

• False