Investing Part I: Vocabulary & Concept Quiz

A bull market is characterized by:

• Falling stock prices and investor pessimism

• Rising stock prices and investor optimism

• Government intervention in the stock market

• A stock market crash

A company pays shareholders a portion of its profits in the form of:

• Capital gains

• Dividends

• Inflation

• Interest

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

What is the primary risk of investing in stocks?

• Guaranteed returns

• The potential for losing money if the stock price declines

• The ability to withdraw money at any time without penalty

• Fixed interest payments

The New York Stock Exchange (NYSE) is an example of:

• A private investment club

• A company that sells only bonds

• A stock exchange where investors buy and sell stocks

• A government-run financial institution

The Nasdaq is known for listing:

• Primarily government bonds

• Mostly technology and growth companies

• Only real estate investment trusts

• Stocks from companies that do not make a profit

True or False: A bear market occurs when stock prices are steadily increasing.

• True

• False

True or False: A shareholder is someone who owns shares of a company's stock.

• True

• False

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

True or False: The rate of return is the percentage of money gained or lost on an investment over time.

• True

• False

Tags

CCSS.6.RP.A.3C

True or False: Investing is completely risk-free if you choose the right stocks.

• True

• False

True or False: Inflation reduces the purchasing power of money over time.

• T

• F