WorksheetsInvesting
Total questions: 40
Worksheet time: 30mins
A market where existing conditions are driving stock prices down is known as a _____ market.
Bear
Bull
Monkey
Mongoose
A company earned $150 million during the year. There are 25 million outstanding shares. What are the company's earnings per share?
2 million
4 million
6 million
8 million
The two leading stock exchanges in the United States are
Nekki and GBSE
Standardard and Poors
NASDAQ and Kekki
New York Stock Exchange and NASDAQ
Kelly purchased 5 shares of Nike stock for $70 a share in April 2012. In April 2015, she decides to sell the stock.The stock price at that time is $90 per share. What is her capital gain?
$20
$160
$100
$200
_____ is an investment strategy in which you spread you investment dollars among different sectors, industries, and securities to balance or reduce the level of risk?
Liquidity
Diversification
Splitting
Funding
What is the best description of the relationship between risk and return?
The higher the risk, the lower the return
The lower the risk the greater the potential for return
Buy high, sell low
The higher the risk, the greater the potential for return
________ are investments backed by the government?
CDs
Bonds
IRAs
Stocks
A ______ account typically earns the lowest rate of return?
Certificate of Deposit (CD)
money market
savings
Stocks
If you want to double $1000 using an investment that earns 6% interest compounded annually, how long will it take you?
6 years
8 years
10 years
12 years
What interest rate, compounded annually would be necessary in order to double $500 in 5 years?
3%
7%
14%
25%
Company profits that are distributed to shareholders during profitable times are called
Stocks
capital loss
capital gains
dividends
What dollar amount makes a stock a penny stock?
$0.01
$1
$2
less than $5
High risk corporate bonds are called.
Penny stocks
T bills
Junk bonds
EE Bonds
The _______ can help you figure out approximately how long it will take your money to double at a given interest rate.
Rule of 27
Rule of 72
50/50 Rule
30/20 Rule
What is the difference between a corporate bond and a government bond?
Corporate bonds are more secure
Government bonds earn a higher interest rate
Government bonds are low risk
Corporate bonds pay less interest
The more people you are supporting, the higher the risk you can afford to take. True/False
TRUE
FALSE
Which is considered a high risk investment?
Bonds
Mutual funds
Stocks
Collectibles
Which is considered a medium risk investment?
Certificate of Deposit (CD)
Junk bonds
Stocks
Collectibles
Companies that want to be listed on a stock exchange must first register with the
Federal Reserve
Securities and Exchange Commission (SEC)
Federal Deposit Insurance Corporation (FDIC)
Federal Communications Commission (FCC)
A plan where the employer pays the employee a certain amount of money upon retirement.
Defined Benefit Plan
Defined Contribution Plan
Money Market Account
Certificate of Deposit
A retirement plan set up by employers for employees to contribute to their retirement fund.
Defined Benefit Plan
Defined Contribution Plan
Money Market Account
IRA
Securities are
stocks, bonds, and other investments sold on the stock market.
certificates of deposits and money market accounts.
M1 and M2 money.
detection systems offered by companies such and ADT.
Which of the following retirement plans is not tax-deferred?
Roth IRA
Traditional IRA
401K
SEP IRA
Buying on the margin means
loaning the stock broker money to purchase more stocks.
borrowing money from the broker to purchase stocks.
buying junk bonds.
buying penny stocks.
A high price earnings ratio means
the stock is expensive.
the stock is economically priced.
the company is having financial troubles.
the stock is cheap.
An advantage of having an Individual Retirement Account (IRA) is
you manage and control the account.
your employer puts money into your account.
you can withdraw money when you want.
you set it up through your your employer.
Regulates the sale of stocks, bonds and other securities.
Federal Reserve (FED)
Securities and Exchange Commission (SEC)
New York Stock Exchange (NYSE)
NASDAQ
Buy ______, Sell ________
low, high
high, low
daily, immediately
bull, bear
Which of the following investors is a risk taker.
Aggressive
Moderate
Conservative
Liberal
