Investment Knowledge Quiz

Distributing money in a variety of investments to spread the risk and lessen losses is called this

• Dollar Cost Averaging

• Capital Gain

• Diversification

• Dividend

• Deflation

According to the instructor, this will never allow you to become rich.

• Dollar Cost Averaging

• Wages

• Deflation

• Capital Gain

• Diversification

The company’s profit returned to the stockholders through an increase in the price of a stock when sold is termed this.

• Diversification

• Deflation

• Dollar Cost Averaging

• Capital Gain

• Dividend

The rate of return on an investment is called this.

• Deflation

• Diversification

• Yield

• Capital Gain

• Dollar Cost Averaging

Wages will never make you rich.

• True

• False

If Gerry bought 300 shares of stock last year at $3 a share and sold it today for $5 per share, his profit would be this

• $900

• $600

• $1,500

• $2,400

Stocks from companies that have a steady or rapid growth are called blue chip

• True

• False

Lower risk will cause a low return.

• True

• False

Which of the following is NOT true in dealing with investment offers

• Make quick strong decisions

• Invest in a well established brokerage firm

• Keep a record of all addresses and phone numbers of companies contacted

• Ask for written copies of all investments

The income that is earned because the stock had increased in value from $10 a share to $12 is termed this.

• Dividend

• Diversification

• Dollar Cost Averaging

• Deflation

• Capital Gain