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Worksheets

Investing

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Which of the following is NOT a stock index?

a)

DOW JONES

b)

S & P 500

c)

NASDAQ COMPOSITE

d)

P/E RATIO

2.

A type of investment that invests in a lot of different companies is called

a)

Stocks

b)

Bonds

c)

Mutual funds

d)

T-bills

3.

What is a stock?

a)

A loan an investor makes to a company or government that pays interest over time.

b)

A share of ownership in a company

c)

A collection of investments sold as a package.

d)

An option to purchase something in the future at todays price.

4.

What is the primary reason for a company to issue stock?

a)

The stocks help investors earn a higher rate of return

b)

To raise money to grow the company

c)

To distribute the risk of bankruptcy across more investors

d)

To increase greater awareness of the company

5.

This is where your orders to buy or sell stock are sent and carried out

a)

Stock Exchange

b)

Brokerage Firm

c)

Stock Meeting Place

d)

Money Exchange

6.

All of the following are ways to earn money as a stockholder EXCEPT:

a)

getting dividends

b)

selling the stock at a higher value

c)

stock splits

d)

selling the stock at a lower value

7.

Dow-Jones Industrial Average is made up of how many stocks

a)

25

b)

30

c)

50

d)

100

8.

Spreading your investments around to inrease financial security

a)

Risk assessment

b)

Diversification

c)

Stocks, bonds & cash

d)

Liquidity trap

9.

Professionally managed, diversified investment that pools resources of many investors

a)

Treasury bonds

b)

Stock index

c)

Mutual fund

d)

Saving account

10.

Ownership in a publicly traded corporation

a)

CD-certificate of deposit

b)

Money Market

c)

Treasury bill

d)

Stock

11.

The number of years it takes for your money to double

a)

72 Rules

b)

Rule of 72

12.

If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?

a)

$10

b)

$40

c)

$20

d)

-$20