WorksheetsThe Basics of Investment
Total questions: 10
Worksheet time: 5mins
What are stocks?
Shares of a company
Expensive goods
Graphs of a company’s progress
Lump sums of money
How is profit made by investing in stocks?
By receiving money for buying stocks of a company
By buying stocks of a company and reselling them for a higher amount
By buying a company and making more stocks
By creating a company
What is a return rate?
The rate by which number of shares is determined
The rate which calculates half of a stock
The rate by which the value of an investment increases or decreases
The rate that compares the value of different stocks on the market
Which of the following usually yields the most profit when invested in?
Fixed Rate Savings Account
Mutual Funds
Easy-Access Savings Account
Stocks/Shares
In which of the following is it easiest to withdraw funds when investing?
Mutual Funds
Easy-Access Savings Account
Stocks/Shares
Bonds
Fill in the blank: Investing in ____ is the most risky
Mutual Funds
Bonds
Easy-Access Savings Account
Stocks
Why is investing in stocks risky?
Since stocks return rate is always fixed
Since stocks once bought cannot be resold
Since the value of a stock depends on the performance of the company, it is variable
Since number of stocks can be increased or decreased based on the company’s directors
What is the most commonly occurring loss in investment?
Number of stocks increasing
Company performance improving
Return rate increasing
Reducing value of the investment
Which of the following is NOT important when looking to invest in a company?
Knowing the number of board directors the company has
Researching about the company’s previous project reports
Investing when the company is flourishing
Determining whether the company’s future plans are achievable
Why do most people invest in well-known companies?
Well-known companies provide free goods to their investors
Well-known companies are more successful and make more money over long time periods
Investing in a well-known company can help you get a good job
The return rate on shares of a well-known company never decreases
