WorksheetsStocks & Investments Quiz Review
Total questions: 27
Worksheet time: 15mins
Name
Class
Date
1.
To minimize the risk of stock investing, an investor may choose to own a portfolio consisting of shares of stock from various companies in different industries. This strategy is known as:
a)
options trading
b)
diversification
c)
trading at a discount
d)
tax sheltering
2.
Which one of the following investment vehicles has the highest risk?
a)
stocks
b)
bonds
c)
money market accounts
d)
savings accounts
3.
An investor seeking ownership in a public corporation would be interested in investing in:
a)
bonds
b)
treasury notes
c)
common stock
d)
commodities
4.
True or False. Investment in stocks has the potential for greater returns in exchange for assuming greater risk.
a)
True
b)
False
c)
It depends
5.
When an investor lends money to a corporation or the government, he/she purchases:
a)
futures
b)
stocks
c)
options
d)
bonds
6.
Which of the following statements is true abut the advantage of buying mutual funds?
a)
they contain a large portion of cash in their portfolio
b)
mutual funds are guaranteed against loss
c)
they are complicated to purchase, so day traders avoid them
d)
they provide immediate diversification and asset allocation to the investor
7.
Investment by a large number of individual investors in a company which can invest their money more efficiently than the individual investors could do on their own is called investment in a:
a)
stock
b)
gold share
c)
mutual fund
d)
commodity exchange
8.
A security that represents ownership in a public corporation
a)
asset
b)
bond
c)
common stock
d)
mutual fund
9.
The redemption value of a bond appearing on the face of the certificate.
a)
call risk
b)
index
c)
face value (par)
d)
bond premium
10.
A prolonged period during which stock prices are falling in value.
a)
bear market
b)
bull market
c)
market value
d)
market trend
11.
A broad term encompassing various investment instruments that represent ownership of an issuer's assets and debt
a)
securities
b)
asset
c)
common stock
d)
stock market
12.
The increase or decrease n the value of a stock or other asset.
a)
call risk
b)
credit risk
c)
capital gain or loss
d)
face value (par)
13.
The most widely used indicator of the overall condition of the U.S. stock market:
a)
The S&P Index
b)
the Dow Jones Industrial Average
c)
The Industrial Index
d)
The NYSE Average
14.
A resource having monetary value owned by an individual or corporation.
a)
asset
b)
bond
c)
credit
d)
liability
15.
The strategy of lowering a portfolio's risk by investing in a variety of securities or other assets which are expected to react differently to changes in market conditions.
a)
asset
b)
diversification
c)
consolidation
d)
index
16.
The possibility that an issuer will default or fail to pay principal and/or interest on outstanding bonds.
a)
call risk
b)
credit risk
c)
market risk
d)
investor risk
17.
A market linking buyers and sellers in securities.
a)
bear market
b)
bull market
c)
stock market
d)
bond market
18.
A benchmark to measure financial or economic performance.
a)
appendix
b)
index
c)
table of contents
d)
market report
19.
A prolonged period during which stock prices are rising in value.
a)
bear market
b)
bull market
c)
stock market
d)
market distribution
20.
invests shareholder's money in a diversified group of securities of other corporations
a)
bond
b)
stock
c)
securities exchange
d)
mutual fund
21.
The purchase price when a bond is selling at a price above par (face value).
a)
bond premium
b)
bond discount
c)
bond maturity
d)
bond date
22.
Monetary value of a business or property in excess of claims or liens against it
a)
asset
b)
liability
c)
credit
d)
equity
23.
A promise from a corporation or government entity to repay an investor the principal and interest on a specific date.
a)
bond
b)
common stock
c)
preferred stock
d)
dividend
24.
Date the principal is returned to the bondholder.
a)
call date
b)
maturity
c)
mutual date
d)
termination
25.
share of company's earnings/profit paid to stockowners
a)
maturity
b)
bond premium
c)
call
d)
dividend
26.
the risk faced by the holder that the bond issuer will redeem the bond prior to maturity
a)
market risk
b)
bear market
c)
call risk
d)
call divide
27.
the purchase price when a bond is selling at a price below par (face value)
a)
bond discount
b)
bond premium
c)
stock premium
d)
dividend
100 %
