Finance and Investment Basics Quiz

What is a share in the ownership of a company, representing a claim on part of its assets and earnings?

• Bond

• Stock

• Dividend

• Portfolio

Who is a person that owns shares in a company?

• Bondholder

• Shareholder

• Investor

• Broker

What is a portion of a company’s earnings paid to shareholders called?

• Interest

• Principal

• Dividend

• Return

What is a loan made by an investor to a corporation or government in exchange for interest payments?

• Stock

• Bond

• Dividend

• Portfolio

What term describes the original amount of money invested or loaned?

• Interest

• Principal

• Return

• Risk

What is the money paid regularly at a particular rate for the use of borrowed money?

• Dividend

• Interest

• Return

• Risk

What is the possibility of losing some or all of the original investment called?

• Return

• Risk

• Diversification

• Portfolio

What is the gain or loss on an investment over a certain period called?

• Return

• Risk

• Interest

• Principal

What is the term for spreading investments across different assets to reduce risk?

• Portfolio

• Diversification

• Ticker Symbol

• Principal

What is a unique series of letters assigned to a security or stock for trading purposes?

• Portfolio

• Ticker Symbol

• Bond

• Dividend