WorksheetsInvesting
Total questions: 28
Worksheet time: 13mins
Which of the following is NOT a stock index?
DOW JONES
S & P 500
NASDAQ COMPOSITE
P/E RATIO
A type of investment that invests in a lot of different companies is called
Stocks
Bonds
Mutual funds
T-bills
What is a stock?
A loan an investor makes to a company or government that pays interest over time.
A share of ownership in a company
A collection of investments sold as a package.
An option to purchase something in the future at todays price.
What is the primary reason for a company to issue stock?
The stocks help investors earn a higher rate of return
To raise money to grow the company
To distribute the risk of bankruptcy across more investors
To increase greater awareness of the company
This is where your orders to buy or sell stock are sent and carried out
Stock Exchange
Brokerage Firm
Stock Meeting Place
Money Exchange
All of the following are ways to earn money as a stockholder EXCEPT:
getting dividends
selling the stock at a higher value
stock splits
selling the stock at a lower value
Spreading your investments around to inrease financial security
Risk assessment
Diversification
Stocks, bonds & cash
Liquidity trap
Professionally managed, diversified investment that pools resources of many investors
Treasury bonds
Stock index
Mutual fund
Saving account
Ownership in a publicly traded corporation
CD-certificate of deposit
Money Market
Treasury bill
Stock
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)
Your money grows faster when it is compounded
You earn interest on your interest
Fees for compound interest are greater than simple interest
Compound interest is hard to calculate, so fewer use it
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
Which is NOT a stock market index?
New York Stock Exchange
Dow Jones Industrial Average
S&P 500
Nasdaq
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
Which of the following correctly orders the investments from LOWER risk to HIGHER risk?
Treasury bond − Stock − Diversified mutual fund
Stock − Treasury bond − Diversified mutual fund
Treasury bond − Diversified mutual fund – Stock
Diversified mutual fund − Treasury bond − Stock
Stock prices are going up in a:
Bear Market
Bull Market
Peak Market
Soft Market
Stock prices are going down in a:
Bear market
Bull market
Peak market
Soft market
Loans made by an investor to an issuer are called:
bond
future
mutual fund
stock
Stocks issued by large respected companies.
Growth Stocks
Income Stocks
Blue Chip Stocks
Cyclical Stocks
Stocks issued by companies expected to succeed.
Growth Stocks
Income Stocks
Blue Chip Stocks
Cyclical Stocks
The government agency responsible for regulating the stock market?
Federal Reserve Board
Federal Trade Commission
Interstate Commerce Commission
Securities and Exchange Commission
A person who is licensed to buy and sell stock
investor
shareholder
stockbroker
Stockbrokers are people who ..... shares for shareholders.
buy
hold
make
pay
Have invested in the business and have a purely financial interest = ???
Lenders
Shareholders
Stakeholders
Human Resources
Shareholders own ___ in a company through the purchase of shares.
resources
assets
equity
profit
Benefit directly from increases in the value of the business = ???
Shareholders
Lenders
Stakeholders
Pressure groups
