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WorksheetsInvesting Quiz
Total questions: 15
Worksheet time: 8mins
The most common relationship between risk and return in investing can be state as:
Higher risk indicates lower return
Higher risk indicates higher return
It is best to have a rate of return on an investment that is ______ than the rate of inflation _______.
Lower; to minimize taxes
Higher; to maintain purchasing power
A(n) _______ investor is one who is not willing to take many risks in their investments.
Speculative
Conservative
Which of the following is not true in regards to investing in stock?
A stockholder may or may not receive a dividend.
A stockholder will always receive a profit when the stock is sold.
If you invest in stocks with the hope that the value of the shares will increase over time, you would be more likely to invest in ________.
Growth stock
Common stock
The first electronic stock exchange was the _________.
Dow Jones Industrial Average
New York Stock Exchange
NASDAQ
S&P 500
A person who is licensed to buy and sell stocks on behalf of others, provide investment advice, and collect a commission on each purchase or sale is called a __________.
Bank clerk
Accountant
Stock Broker
Retail Investor
This index is a weighted average of 30 different blue chip stocks traded on the New York Stock Exchange is known as the ____________.
Standard and Poor’s 500
Dow Jones Industrial Average
Fortune 1000
Bond Index
The Standard and Poor’s 500 index increases in value an average of _____% each year.
3%
8%
10%
14%
When a private company wishes to raise capital to expand, it can issue shares to the public through a process called
Stock buy-back
Liquidating assets
Mergers and acquisitions
Initial public offering (IPO)
A company that is not publicly traded is said to be ________.
Private
Public
Bonded
Aggressive
A bond is a _________.
Type of debt that a company issues to investors for a specified period of time
Share of ownership in a company
Mutual funds are ______.
Speculative investments that are managed without fees
Diversified investments comprised of a variety of stocks and bonds
A company needs to raise cash to expand, but it does not want to issue stock. A company can raise cash by selling _________ and paying interest.
Bonds
Contracts
A(n) _______ is a group of companies producing a similar product or service.
Franchise
Mutual fund
Industry
Competitor
