WorksheetsUnit 4 Review - Retirement
Total questions: 25
Worksheet time: 13mins
Stockholders can lose all of their investment if the company fails or goes out of business?
True
False
A capital gain becomes profit only when you sell the stock.
True
False
Growth stocks typically pay the most certain and predictable dividends.
True
False
Common stock can be issued without a par value.
True
False
When interest rates are low, people tend to buy fewer stocks.
True
False
Bull markets are usually short and savage, and stock prices may fall as much as 20 percent.
True
False
An increase in the value of a stock over time is called a(n):
Investment
Dividend
Captial gain
Yield
Stocks in young often small corporations that have higher overall risk than stocks of successful, long-established companies are called
growth stocks
defensive stocks
blue chip stocks
emerging stocks
Current Profit / Purchase Price + Commission =
Earnings per Share
Net Yield
Return on Investment
Interest Rate
The price for which a stock is bought and sold in the marketplace is called the
par value
market value
yield
dividend
Which of the following is NOT a securities exchange?
OFOTD
NASDAQ
NYSE
All of the above are securities exchanges.
The price of a share of stock dividend by the corporation's earnings over the past 12 months is the
percent yield
ROI
earnings per share
P/E ratio
The use of long-term to earn a financial reward is called
investing
speculating
gambling
diversifying
According to the Rule 72, if an investment of $5,000 is yielding an average of 6 percent, it will take ____ years of that investments to reach $10,000.
6
12
36
72
This type of risk is caused by the business cycle
interest-rate risk
market risk
political risk
industry risk
All of the following are wise investment practices except
seek good investment advice
keep good financial records
define your financial goals
make your decisions quickly to take advantage of the market.
Which would be considered the lowest risk investment?
a stock
an annuity
real estate
a corporate bond
The amount a bondholder will be paid at maturity is called:
dividend
face value
yield
market yield
When bonds sell for more than their face value, they are selling at a:
cut rate
capital gain
discount
premium
Bond prices
tend to remain steadier than stock prices.
tend to react in the same direction of stock prices.
can never change once you've purchased a bond.
are by law always lower than stock prices.
An investment-grade bond
offers the highest possible yield
is highly speculative
is considered the highest-quality, lowest-risk bond.
has no rating at all.
Many financial advisers suggest that you will need between ______ percent of your preretirement income to live comfortably.
50 and 60
60-75
75-85
95-100
Because of inflation
the cost of living goes down over time for seniors
retired individuals sometimes find it dificult to maintain their standard of living
price increases boost buying power
all retired individuals need to work at part-time jobs.
A Roth IRA differs from a traditional IRA in that
earnings as well as contributions are taxed when you withdraw the money at retirement.
there is no penalty for early withdrawal.
contributions are taxed but earnings are not.
contributions are not tax-deductible.
A tax-deferred retirement plan available to small businesses is a
Keogh plan
defined-benefit plan.
Simplified Employee Pension (SEP) Plan
money market plan
