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WorksheetsFB 23: Investing In Stocks and Bonds
Total questions: 28
Worksheet time: 15mins
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
Dow-Jones Industrial Average is made up of how many stocks
25
30
50
100
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
If you bought a stock at $20 a share and now it's worth $40 a share how much do you make per share if you sell all your stock now?
$10
$40
$20
-$20
What is the term for a single unit of ownership in a corporation?
Bond
Mutual Fund
Annuity
Stock
What is the most effective strategy for portfolio growth?
A long-term, diversified approach
Pure luck
Following Warren Buffet's trading strategies
Adopting investment strategies of previous generations
Why should you start investing early?
Younger investors face less risk, ensuring safer investments
It allows more time for your investments to grow through compounding
Investing quickly generates substantial wealth
Investment fees are lower for younger individuals
What is a portion of stock called?
Dividend
Market
Share
Broker
What is the term used to uniquely identify a stock for trading?
Ticker Symbol
Stock Exchange
Diversification
Stock
Identify the Ticker Symbol for the mentioned stock.
DSI
DS
DIS
NKE
Which is considered more risky?
Saving money
Investing money
Which is more short-term?
Saving
Investing
Why does compound interest lead to greater wealth accumulation than simple interest?
Compound interest accelerates the growth of your investment.
Simple interest is taxed, whereas compound interest is not.
Compound interest incurs higher fees than simple interest.
Due to its complexity, compound interest is less commonly utilized.
Which investment type carries the highest risk?
Stock
Mutual Fund
Bond
Money Market Account
A _____ represents lending money to an entity, whereas a _______ signifies part ownership in that entity.
bond, ETF
stock, bond
bond, stock
ETF, bond
How can investors receive compounding returns?
By selecting a savings account that has a higher interest rate
By investing their earnings back into their original investment
By transferring their earnings into a high-risk investment
By diversifying their investment portfolio
Investors nearing retirement will typically shift their investment portfolios to include ________ risk investments.
lower
moderate
higher
None of the above
Which type of investment is the least risky?
stock
bond
mutual fund
savings account
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
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
