FI Q2 Benchmark

When a venture capitalist offers an entrepreneur $100,000 for shares representing 20% of a company, it is a form of:

• Bank loan

• Debt financing

• promissory note

• Equity financing

What's the difference between a publicly held and privately held corporation?

• Publicly held corporations are owned by shareholders

• Publicly held corporations are bought and sold on a stock exchange

• Publicly held stocks offer dividends

• All of the above are differences between publicly held and privately held corporations

A bank loan is what form of financing?

• Debt

• Equity

Tyreek pitches five investors. They agree to each invest $25,000 and value Tyreek's company at $200,000. How much of the company will Tyreek still own after the investment?

• 37.5

• 43.3%

• 50%

• 56%

IPO stands for

• Instant payout option

• Investment portfolio option

• Investment premium ownership

• Initial public offering

The oldest and by far largest stock exchange in the US is the __________.

• Dow Jones Industrial Average

• NYSE

• NASDAQ

• S&P 500

This is an all digital stock market and is the 2nd largest stock exchange in the US.

• Dow Jones Industrial Average

• NYSE

• NASDAQ

• S&P 500

What does a share of stock represent?

• A debt that must be repaid to the corporation

• A form of earned income

• A guarantee of profits in the corporation

• A small portion of ownership in a corporation

In order for an average investor to purchase stock, they must buy the stock __________

• Directly from the owner of the corporation
• Directly from the stock exchange where it’s sold
• From any bank or financial institution
• Through a registered stock broker

This company has become a popular source to purchase stocks because of its “no fee” policy and access to unconventional investment assets such as cryptocurrency.

• Chase

• Edward Jones

• NASDAQ

• Robinhood