Chapter 14

This picture describes markets that have been...... 

• Doing well
• Doing poorly
• Not changing

Corporations must pay dividends to stock holders regardless of profits

• YES
• NO

Which of the following is a way to start investing?

• Purchase stocks on your own

• Pool money into a mutual fund managed by an advisor

• Purchase part of an index fund

• Hire a financial advisor to make a plan for you

• All options are correct

All of the following are strategies to reduce risk EXCEPT…

• Investing small amounts of money over longer periods of time

• Hiring an investment manager who can make trades fast enough to beat the market

• Making sure your investments are diversified

• Holding your investments for at least five years

Which of the following is TRUE about owning a share of stock?

• The value of a share is set by the company and never changes.

• You have to return the share of the company you own typically after 5 years, otherwise, you pay a penalty fee each year.

• Companies lose significant amounts of money every time someone buys a share.

• Owning a share means you own a percentage of the company.

Contributions to this retirement account are made after taxes

• Non Roth
• Roth

Spreading your investments around to inrease financial security

• Risk assessment
• Diversification
• Stocks, bonds & cash
• Liquidity trap

What is the first step to investing

• Get a loan

• Save Cash

• Credit cards