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Investing Quiz

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

What is the main reason a company issues stocks

a)

help investors earn a higher rate of return

b)

raise money to grow the company

c)

distribute the risk of bankruptcy across more investors

d)

increase awareness of the company

2.

A diversified portfolio is desirable because?

a)

indicates an investor is a good predictor of the return an investment will have

b)

decreases risk by investing money in a variety of investment tools

c)

increases the risk/return ratio

3.

stock analysts use this term for a market that is doing poorly

a)

rooster

b)

bear

c)

bull

d)

sheep

4.

Relationship between risk and return in investing can be stated as:

a)

higher the risk indicates lower potential return

b)

higher risk indicates higher potential return

c)

lower risk indicates higher potential return

5.

A mutual fund is?

a)

option to purchase something in the future at today price

b)

share of ownership in the governement

c)

collection of investments sold as a package

6.

stock analysts use this term for a market that is doing good and is on the rise

a)

rooster

b)

bear

c)

bull

d)

sheep

7.

Which of the following is not a type of bond?

a)

Government

b)

Corporate

c)

Stock

d)

Municipal

8.

Which would be considered the highest risk investment type?

a)

Stock

b)

Mutual Fund

c)

Bond

d)

Money Market Account

9.

Andy earned $300 on a $1000 investment. What is his current ROI (return on investment)?

a)

2%

b)

3%

c)

30%

d)

70%

10.

A diversified portfolio is desirable because

a)

It limits investment choice

b)

It's a good predictor on rate of return

c)

It increases risk and return

d)

It decreases risk

11.
A dividend is a distribution of a portion of a company's earnings
a)
True
b)
False
12.
This is considered an IOU and the higher the interest rate on this, the more risky it is
a)
Bond
b)
T-bill
c)
Money market
d)
Stocks
13.

True or False: Investing in a diversified portfolio of stocks guarantees you will not lose money.

a)

True

b)

False

14.
Large, well established companies
a)
Growth 
b)
Income
c)
Blue chip
d)
Preferred
15.

Profit from the sale of an investment is known as...

a)

collateral gains

b)

Cash

c)

Sales margin

d)

Capital gains

16.
A holder or owner of stock in a company or corporation.
a)
stock market
b)
shareholder
c)
portfolio
d)
industry
17.
Mark bought 100 shares of intel stock.  Each share sold for $35.50.  If no fees were involved, Mark paid $3,550 for the shares.
a)
True
b)
False
18.

What is the differences between stocks and bonds?

a)

They are both investments.

b)

A stock is what corn grows on, and a bond gets you out of jail.

c)

Stock represents ownership, and bonds represents your word.

d)

A stock represents ownership, and bonds represents a loan.

19.
If a bond is held to maturity, the investor will receive an amount stated on the bond known as the _______.
a)
ticket value
b)
face value
c)
maturation value
d)
printed value
20.
Which investment is like an IOU/loan?
a)
Stock
b)
Bond
c)
Mutual Fund
d)
Apple Pie