Investment Types

What is a share in the context of the stock market?

• A document proving debt ownership in a company

• A unit of currency used for trading on the stock market

• A type of financial derivative

• A unit of ownership in a company

If you buy a stock in Sony, what do you own?

• A percentage of Sony's debt

• A fixed interest rate from Sony

• A percentage of Sony's ownership

• A right to manage Sony

What happens to the stock value when the company suffers a loss?

• The stock value decreases

• The stock value remains the same

• The stock value goes up

• The stock value is not affected by company profits

If you bought a share of Sony at $35 and the stock goes up to $45, how much have you made?

• $5

• $10

• $35

• $45

What does a Stock Market Index provide to investors?

• A detailed financial report of a company

• A method to buy stocks directly

• A snapshot of how the markets are performing

• A historical account of stock prices

What is the general market sentiment during a Bull Market?

• Indifferent, stocks are stable

• Pessimistic, stocks are going down

• Optimistic, stocks are going up

• Unpredictable, stocks are volatile

What action is typically advised during a Bear Market?

• Hold, do not make any transactions

• Buy, as stocks are going up

• Sell, as stocks are going down

• Invest in alternative assets

What is a Certificate of Deposit best described as?

• A) A high-risk, high-reward investment

• B) A document proving ownership of a bond

• C) A low-risk, low-reward investment where money is loaned to a financial institution

• D) A type of stock in a company

What does a financial institution promise to do in exchange for your money in a Certificate of Deposit?

• A) Offer you company shares

• B) Pay you back with interest ranging from 3% to 7%

• C) Allow you to withdraw money anytime

• D) Convert your money into foreign currency

Can you withdraw your money from a Certificate of Deposit before the term is up?

• A) Yes, at any time without penalty

• B) Yes, but only after half the term has passed

• C) No, you cannot withdraw it until the term is up

• D) Yes, but with a high penalty fee