Equities Quiz

What are equities also known as?

• Bonds

• Stocks

• Derivatives

• Mutual Funds

Which type of stock grants voting rights?

• Warrants

• Convertible Stock

• Common Stock

• Preferred Stock

What is a key characteristic of preferred stock?

• Higher risk than common stock

• Priority in dividend payments

• No dividends paid

• Unlimited voting rights

What is a potential disadvantage of investing in equities?

• Volatility

• Guaranteed returns

• Low risk

• Fixed income

What does the risk-return tradeoff imply?

• Higher potential returns come with higher risk

• Lower risk leads to higher returns

• Risk has no impact on returns

• Higher risk leads to lower returns

Which factor does NOT affect equity prices?

• Company performance

• Investor sentiment

• Weather conditions

• Global events

What is value investing focused on?

• Short-term gains

• Undervalued stocks

• High-growth companies

• Market trends

What is a characteristic of growth investing?

• Focus on dividend yield

• Low price-to-earnings ratio

• Investing in established companies

• Rapid earnings growth

What is the primary goal of index investing?

• To outperform the market

• To focus on short-term gains

• To match market performance

• To invest in high-risk stocks

What is a benefit of diversification in equity investing?

• Increased risk

• Minimized potential returns

• Reduced overall portfolio risk

• Guaranteed profits