Stocks and Bonds (B12&13)

How often to corporate bonds holders receive dividends?

• monthly

• quarterly

• once every 6 months

• yearly

Which is a short-term investment strategy?

• buy on margin

• buy and hold

• dollar-cost averaging

• direct investment

Which is a long term investment strategy?

• sell short

• buy on margin

• dollar cost averaging

• All options are correct.

Stockholders can lose their entire investment if a company fails.

• True

• False

You must pay taxes on interest earned on which type of bond?

• corporate bonds

• municipal bonds

• Both corporate and municipal bonds.

• Neither corporate of municipal bonds.

Bonds issued by state and local governments

• corporate bonds

• location bonds

• municipal bonds

• commercial bonds

A benchmark that investors use to judge the performance of investments

• stock table

• stock market

• stock split

• stock index

How many stocks are tracked by the Dow?

• 20

• 30

• 40

• 50

Which type of bond usually pays higher interest?

• corporate bonds

• municipal bonds

The highest quality, lowest risk bonds

• junk bonds

• international bonds

• investment grade bonds

• imperial bonds