Investing Review Quiz

What is a PORTFOLIO?

• An owner of shares in a company

• Investing in a variety of different stocks, bonds, or funds to reduce overall risk

• A share of the value of a company that can be bought, sold, or traded as an investment

What is a Shareholder?

• An owner of shares in a company

• Investing in a variety of different stocks, bonds, or funds to reduce overall risk

• A share of the value of a company that can be bought, sold, or traded as an investment

What is a Stock?

• An owner of shares in a company

• Investing in a variety of different stocks, bonds, or funds to reduce overall risk

• A share of the value of a company that can be bought, sold, or traded as an investment

What is Risk?

• A collection of financial investments like stocks, bonds, and commodities

• Investing in a variety of different stocks, bonds, or funds to reduce overall risk

• Degree of uncertainty on how much money an investor will make

What does Diversify mean?

• A collection of financial investments like stocks, bonds, and commodities

• Investing in a variety of different stocks, bonds, or funds to reduce overall risk

• Degree of uncertainty on how much money an investor will make

1. When a private company wishes to raise capital to expand, it can issue shares to the public through a process called ___________________

• Initial public offering

• Mergers and acquisitions

• Stock buy-back

1. A(n) _______ investor is one who is unwilling to take much risk in their investments.

• Aggressive

• Moderate

• Conservative

1. The first completely electronic stock exchange was the _________.

• Dow Jones Industrial Average

• NASDAQ

• New York Stock Exchange

1. This index is a weighted average of 30 different blue chip stocks known as the ____________.

• Bond Index

• Dow Jones Industrial Average

• Standard and Poor’s 500

1. The Standard and Poor’s 500 (S&P500) index increases in value an average of _____% each year.

• 3%

• 8%

• 10%