Investing 101 Worksheet

What is the Standard & Poor's 500 (S&P 500)?

• It is a stock index that consists of the 500 largest companies in the U.S. and is generally considered the best indicator of how U.S. stocks are performing overall.

• It is a government bond index that tracks the performance of U.S. Treasury bonds.

• It is a measure of the inflation rate in the United States.

• It is a currency exchange rate index for the U.S. dollar against other major currencies.

What is investing?

• Investing is the act of putting money into a project or asset with the expectation of earning a profit or increasing the value of the investment over time.

• Investing is spending money on luxury items without expecting any return.

• Investing is the act of saving money in a bank account with no interest.

• Investing is the process of donating money to charity.

What is a bull market?

• A bull market is a period of time in financial markets when the price of an asset or security rises continuously (at least 20%).

• A bull market is a period when the price of an asset or security falls continuously.

• A bull market is a market condition where trading is halted.

• A bull market is a period of time when the market is stagnant.

What is a bear market?

• A bear market is a prolonged drop in investment prices (at least 20% from recent high).

• A bear market is a period of rising stock prices.

• A bear market is a market condition where prices are stable.

• A bear market is a short-term fluctuation in stock prices

Which stock exchanges are mentioned in the context of trading?

• New York Stock Exchange (NYSE) and NASDAQ

• London Stock Exchange (LSE) and Tokyo Stock Exchange (TSE)

• Shanghai Stock Exchange (SSE) and Hong Kong Stock Exchange (HKEX)

• Euronext and Australian Securities Exchange (ASX)

A _______ is a range of investments held by a person or organization.

• Portfolio

• Account

• Budget

• Ledger

are the capital raised by a business or corporation through the issue and subscription of shares.

• Stocks

• Bonds

• Loans

• Debentures

A _______ is an investment program funded by shareholders that trades in diversified holdings and is professionally managed.

• Mutual Fund

• Savings Account

• Certificate of Deposit

• Bond

Fill in the blank: _______ is a type of investment fund that allows investors to buy a basket of assets like stocks or bonds, all in a single trade.

• Electronic Funds Transfer (EFT)

• Exchange-Traded Fund (ETF)

• Mutual Fund

• Hedge Fund

A _______ is a debt security that represents a loan from an investor to a borrower, such as a government, corporation, or municipality.

• Bond

• Stock

• Equity

• Mutual Fund