WorksheetsWealth Building and Investing Final
Total questions: 81
Worksheet time: 58mins
A company owned by families or a small number of investors and do not issue stock to the public.
public company
large capitalization company
private company
small capitalization company
A solid, large, and stable corporation that is worth millions
Blue Chip Company
Growth Stock Company
Cyclical Stock Company
Small Capitalization Company
Why would a company need to issue stock?
To increase its' customer base.
To raise capital
To stop the government from regulating it.
To show customers that it's successful.
The DOW Jones Industrial Average is an index of 30 American companies. Why is the DOW Jones Industrial Average important?
It tells Americans how much debt the country is in.
It helps the US government predict when a stock market crash will happen.
It tells Americans how many jobs are out there.
It provides a snapshot of how the stock market and the US economy is doing at that moment.
Apple is releasing a new iPhone that is predicted to change the cell phone world. Millions of people have pre-ordered it. What do you think will happen to their stock?
It is likely to go up.
It is likely to go down.
demand for stock will go down
nothing will happen, stock price stay the same
You decide that you want to invest a little bit of money in Apple stock. But in order to do that you need to figure out their stock symbol. What is the symbol that Apple uses on the stock market? Use the image to help you figure it out.
AAPL
APPLE Inc.
Nasdaq
Technology
Approximately how much money was one share of Apple selling for last night? Use the image to help you.
$7.52
2.62%
1.7M
$294.40
You have $5,000 that you are willing to invest in Apple's stock. If Apple's stock is selling for the CLOSING price, how many shares could you buy?
16
17
18
19
Apple stock plummets and now you have to decide if you hold onto your stock in the hopes that it goes back up, or sell it at a loss. Apple stock is now selling or $160 a share. You have 9 shares. When you first bought them their total value was $2,574. What is their total value now?
$2,574
$160
$1,440
$1,890
When a company earns a profit, sometimes those profits are distributed to the company’s shareholders. This means those shareholders are paid a _________________.
dividend
asset
stock
bankrupt
When you own part of a company, this means you own ________ of that company.
dividend
asset
stock
bankrupt
How can I make money when the stock price is expected to plummet (go down)?
buy on margin
sell short
buy additional shares
1-4 letter symbol used to represent a company
tic tok
stocker
stock ticker
stocking
professional that makes stock trades for their investor
dividend
asset
stockbroker
stockholder
Which would be considered the highest risk investment?
Stock
Mutual Fund
Bond
Money Market Account
Why do companies usually declare stock splits?
stock prices are too low
too many shares of the stock are released
the company wants to reacquire shares
stock prices are too high
How can you make money on stocks? (hint: choose 2 correct answers)
A capital gain
Interest
Dividends
Holding the stock at least 3 years
A diversified portfolio is desirable because
It limits investment choice
It's a good predictor on rate of return
It increases risk and return
It decreases risk
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
Anthony bought 40 shares of ABC corporation's stock at $80 a share. The investor receives notice that there has been a 2-for-1 stock split. Based on this info, Anthony would own _____ shares at the moment of the split
20 shares of the stock and the price of each share is $80
40 shares of the stock and the price of each share is $40.
80 shares of the stock and the price of each share is $40.
80 shares of the stock and the price of each share is $80.
Sakina received a dividend from the company in which she is a stockholder. A dividend is
profit from the sales of some of his shares of stock.
distribution of part of a company's profits.
required by the SEC to be given to shareholders.
interest on his shares of preferred stock.
If the Exxon Oil Corporation tanker spilled oil in the ocean around Australia. As a result of this accident, the share price of this stock is likely to
decrease
increase
not be affected and remain about the same
fluctuate
A government report indicated that the use of Tylenol aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Tylenol's stockholders (Johnson& Johnson) are likely to
buy shares causing the price of the stock to increase
sell shares causing the price of the stock to decrease
not react, causing the price of the stock to remain about the same
buy Pax corporate stock
The Government agency that regulates the stock markets is called the ________
OSHA- Occupational Safety & Health Administration
SEC- Securities and Exchange Commission
FBI- Federal Bureau of Investigation
FICA- Federal Insurance Contributions Act
Buying little pieces of a whole lot of different companies, usually managed by professional(s)
Stocks
Bonds
Mutual funds
T-bills
Tiffany wants to purchase stocks with the money she received from her tax return. Who would she contact to make the transaction?
A brokerage firm
The New York Stock Exchange
A real estate agent
The American Stock Exchange
You purchased 100 shares of Nike at $80.75 per share. A year later you sell your 100 shares for $87.25 per share.
1. Did you make a profit or lose money?
2. How much money did you make or lose?
Profit $650
Loss $650
Profit $6.50
Loss $6.50
Which stock pays the lowest dividend?
A corporation “goes public” when it ___________________.
gives out its first dividend.
first issues stock to investors to buy.
has a big party and invites all its investors.
becomes an entity.
The 52 week high and low is...
The highest and lowest selling price of the stock in the last 52 weeks.
The highest and lowest Morningstar Ranking in the last 52 weeks.
The highest and lowest dividend given in the last 52 weeks.
The highest and lowest bid price in the last 52 weeks.
A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of a different kind of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio
Diversified Portfolio
Bear Market
Growth Portfolio
Value Portfolio
the share of ownership in a corporation that gives holders voting rights and a share of profit.
Common Stock
Preferred Stock
Stock index
primary market
An investor sells stock and reports a profit. This profit, made from investments, are reported as...
Capital Gains
Capital Losses
Bull Markets
Bear Markets
Stock that is paid first and offers NO voting rights is known as
common stock
preferred stock
stock exchange
Primary stock
Small, newer companies with great potential are known as
Defensive Stocks
Small indices
Growth Stocks
Blue Chip Stocks
Stocks that remain steady in bad times and good times
Cyclical
Speculative
NYSE
Defensive
When you logged into your Stock Market Game portfolio that first time, you had more than $100,000. This is because
you got bonus cash because your teacher registered early.
additional funds were provided in anticipation of inflation.
Of a rise in value of the US dollar on the currency market.
The cash in your portfolio has been earning interest.
What is the difference between traditional IRA and Roth IRA?
Both grow tax free, Roth IRA pays tax upfront, IRA pays tax when withdraw $ at retirement
Both grow tax free, Roth IRA pays tax when withdraw $ at retirement
Both grow tax free, both pay tax when withdraw at retirement, IRA can be used for college and/or first home
What is the difference between traditional IRA and Roth IRA?
Both grow tax free, Roth IRA pays tax upfront, IRA pays tax when withdraw $ at retirement
Both grow tax free, Roth IRA pays tax when withdraw $ at retirement
Both grow tax free, both pay tax when withdraw at retirement, IRA can be used for college and/or first home
What is the minimum length of time your money has to be in a Roth IRA so that any withdrawals would be tax-free?
One year
Five years
Ten years
Fifteen years
The two MAIN benefits of a Roth IRA are: (select 2)
The money invested grows tax-free
You are taxed when you withdraw the money
There are no income limits on contributions
You do not owe any taxes when you withdraw the money
If you only made $2750 this year working, what is the maximum amount you can contribute to a Roth IRA?
$2500
$2750
$3000
$5500
In order to be eligible to open a Roth IRA, the only requirement is that you have a ___________.
pet
clue
job
driver's license
When opening an account, you need to choose a ________ who could inherit your account.
teacher
stranger
beneficiary
friend
You can invest in almost anything in your Roth IRA, but _______ are recommended.
single stocks
Junk bonds
mutual funds
gold
Which of the following is TRUE, based on the historic returns of the S&P 500?
The stock market fluctuates in the short term and is difficult to predict. It has an average annual return of 6-7%, adjusted for inflation.
Stock prices rise consistently in the short term and only decrease during recessions. The stock market has an average annual return of 15%, adjusted for inflation.
The stock market fluctuates in the short term and the majority of investors can predict the direction of the market. The stock market has an average annual return that is negative, adjusted for inflation.
On average, the growth of the stock market matches the rate of inflation. It has an average annual return of 2-3%, adjusted for inflation..
Stanley deposits $1,000 into a savings account that pays 1% interest. At the end of the first year, he's earned $10 in interest and there is $1,010 in the account. If the account has simple interest, the 1% interest for year two would be based off ____________. If the account has compounding interest, the 1% interest for year two would be based off ________________.(NOTE: The first choice goes in the first blank, the second choice goes in the second blank)
The original deposit ($1,000); The year one account balance ($1,010)
The original deposit ($1,000); The year one interest ($10)
The year one account balance ($1,010); The year one interest ($10)
The year one account balance ($1,010); The original deposit ($1,000)
Typically, when should you first file the FAFSA?
After you finish freshman year of high school
October or November of your last year of high school
After you receive your Student Aid Report
Once you are ready to start repaying your student loans
Which of these options depicts the types of financial aid from MOST attractive to LEAST attractive?
Private loans, Federal loans, Work-study, Grants/Scholarships
Federal loans, Grants/Scholarships, Work-study, Private loans
Work-study, Grants/Scholarships, Federal loans, Private loans
Grants/Scholarships, Work-study, Federal loans, Private loans
If you don’t proactively choose a different repayment plan option, your Federal student loans will default to the Standard Plan, which has a term of __________.
5%
10%
5 Years
10 Years
Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
His gross pay is $2,500 and net pay is $3,000.
His gross and net pay are $3,000.
His gross and net pay are $2,500.
His gross pay is $3,000 and net pay is $2,500.
Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?
A budget deficit of $200
A budget deficit of $4800
A budget surplus of $200
A budget surplus of $4800
Which of the statements below BEST describes the difference between saving and investing?
Saving requires you to put money aside on an annual basis while investing requires you to put money aside every two weeks
Saving guarantees a rate of return of 7% while investing guarantees a rate of return of 2%
Saving typically beats the rate of inflation while investing does not
Saving is best for short-term goals and emergencies while investing is best for long-term goals like retirement
You purchase 100 shares of Ravioli Den for $45/share. One year later, you sell the shares for $52/share. What was your TOTAL GAIN for your investment in Ravioli Den? Assume that Ravioli Den didn't pay a dividend and that you didn't incur any trading fees during that period.
$0
$200
$700
$900
Which of the following are good reasons to buy a stock index fund that invests in the S&P 500?
It is diversified, has low fees and will "beat" the market
It has high fees, is diversified and historically has performed better than most mutual funds investing in big companies
It is diversified, has low fees and historically has performed better than most mutual funds investing in big companies
It is not diversified, has high fees and will "beat" the market
Why should you accurately complete a W-4 form any time you start a new job or change your tax status?
You need a copy of your W-4 to file your tax return annually
Your W-4 determines how much income tax money your employer should withhold
Your W-4 determines your total tax bill at the end of the year
Completing a W-4 will guarantee you receive a large tax refund
10C. Which of the following statements about the W-2 form is TRUE?
A W-2 lists all the money you earned in cash over the last year
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
You need a separate W-2 form from EACH of your employers in order to file your taxes
The W-2 includes information about the interest you earned from your investments
How is an online savings account different from a traditional savings account?
An online savings account includes a mobile app, while a traditional savings account does not
An online savings account is offered by a bank that customers can only access online rather than at a physical bank branch
Online savings accounts will only offer electronic statements rather than paper copies
Online savings accounts cannot be FDIC insured, whereas traditional savings accounts can
Property owned by a person or company, regarded as having value is an __________
asset
liability
net worth
pizza
What is another word for house payment?
Wages
Net Worth
Mortgage
Book
The difference of what you own and what you owe (the difference between assets and liabilities)
asset
liability
net worth
coconut
Assets=$20,000
Liabilities=$50,000
What is the net worth?
$80,000
- $80,000
$30,000
- $30,000
Which of the following is an asset?
mortgage
school loan
jewelry
credit card bill
Loans are examples of ________?
Assets
Liabilities
Net worth
Insurance Premiums
Which of the following are considered an expense?
Monthly Car Payment
Mortgage
Car Loan
Monthly Electric Bill
What is the purpose of a Statement of Financial Position?
To List your Assets
To List your Liabilities
To Show your Net Worth
To Show were you went on Tuesday
How can you INCREASE Net Worth? (Check all that apply)
Increase Assets
Decrease Liabilities
Decrease Assets
Increase Liabilities
The monthly fee for internet service is a(n):
Liability
Expense
The Balance On your Credit Card would be considered a/an
asset
liability
