William recently invested in a company and received a payment from them. What is this payment called?

A portion of income paid out to shareholders

A measure of a company's core earnings

An investment vehicle using pooled funds

Michael is analyzing the financial performance of his company and wants to calculate the EBIT. What does EBIT stand for?

Earnings Before Interest and Taxes

Earnings Before Investment and Trading

Earnings Before Income and Tariffs

Earnings Before Inflation and Taxes

Olivia is considering hiring someone to help her with her financial planning. What is the role of a financial adviser?

To provide financial services or guidance to clients

To create an investment portfolio

James is considering investing in a fund that mirrors a certain index. What type of fund is he looking at?

A fund that mirrors a certain index

A measure of a company's profits

Aria is planning for her future and wants to know what an IRA is. What is an IRA?

A type of retirement account with tax advantages

Charlotte just turned 18 and is considering her financial future. She wants to know what an IRA is.

A type of investment account you can open at age 18

A loan you can take out at any age

Hannah is considering investing in different assets. What does liquidity refer to in this context?

How easily an asset converts into cash

The value of a company's shares

The amount of debt a company has

Lily is studying finance and wants to understand how the financial market is tracked. What are market indexes used for?

To track the financial market by analyzing data from specific subsets of companies

To determine the interest rates of loans

To calculate the total revenue of a company

To assess the environmental impact of a company

Emma is learning about finance and comes across the term 'market capitalization'. What does it mean?

The cumulative value of all outstanding shares

The number of employees in a company

Arjun is considering investing his savings and is looking at different options. What is a mutual fund?

A pooled portfolio managed by a professional portfolio manager

Priya is moving to a new city and needs to decide what to take with her. What items are considered personal property?

Vehicles, boats, jewelry, furniture, and farm equipment

Rohan is analyzing different companies to invest in and wants to understand what the price-to-earnings ratio determines. What does it tell him?

The value of a company relative to its earnings

The number of employees in a company

The environmental impact of a company

Olivia and Noah are discussing financial markets. Olivia asks Noah, "What are examples of market indexes?"

Dow Jones Industrial Average and Nasdaq Composite Index

Avery is considering investing in a type of stock that offers special benefits like higher dividend payments. What type of stock is Avery interested in?

Shares that offer special benefits like higher dividend payments

Avery is considering investing in something that involves the land and any permanent structures attached to it. What is Avery looking to invest in?

The land and any permanent structures attached to it

A portion of a company's equity

A place where stocks are traded

Grace is planning for her retirement and is considering different options. What is a Roth IRA?

A type of IRA where contributions are not taxed upon withdrawal

A retirement plan offered by employers

A type of IRA where contributions are taxed upon withdrawal

David is trying to make a profit in the stock market. What strategy is he using if he borrows shares and sells them with a promise to return them later?

Borrowing shares and selling them with a promise to return them

Buying shares at a low price and selling at a high price

Trading bonds in the stock market

Rohan is interested in investing his savings and is looking for a place where he can buy and sell stocks, bonds, and other investments. What is this place called?

A place where stockbrokers and traders buy and sell stocks, bonds, and other investments

A place where real estate is bought and sold

A market for trading commodities

Grace recently bought some shares in a tech company. What does owning these shares represent?

Ownership of a portion of a company

Avery is learning about the stock market and wants to understand what volatility means in the context of traded assets. What is the definition of volatility?

The degree to which an asset's price varies over time

Mia is learning about different investment options and comes across ETFs. She wonders, what does an ETF track?

A specific industry, commodity, or index

Investment Terms Practice

Quiz

•

Business

•

9th Grade

•

Practice Problem

•

Easy

Cherry Andrews

Used 1+ times

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Scarlett is selling her old bicycle. What is the lowest price she is willing to accept for it called?

Michael is considering investing in something that could help him generate additional income or increase in value over time. What is this type of item called?

Abigail is planning her investment strategy. What is the goal of asset allocation?

Elijah noticed that the stock prices in his investment portfolio have been consistently decreasing over the past few months. What is a market that is falling or trending lower called?

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Daniel bought a share of stock for $500 and sold it at $200. What is this called?

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