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WorksheetsEssentials of Investments - SEED
Total questions: 12
Worksheet time: 6mins
Which stock market index focuses mainly on technology companies?
Dow Jones
S&P 500
NASDAQ
Russell 2000
What is it called when a company begins publicly selling its shares?
Primary Sale
Initial Public Offering (IPO)
First Public Offering (FPO)
Bankruptcy
Which factor is most likely to raise a company's stock price?
A new competitor
A name change
Being sued by the government
Higher expected earnings
Which of these is the least risky type of investment?
Stocks
Bonds
Crypto
Options
What is the term for the increase in the value of an investment?
Buy and hold
Compound interest
Capital gain
Initial public offering
Which type of account allows you to claim a tax deduction on your contributions?
Roth IRA
Traditional IRA
High yield savings account
Hedge fund
What is the term for interest accumulating on itself over time, leading to rapid growth?
Capital gains
Linear interest
Compound interest
Tax-exempt interest
Which type of account offers an employer match?
401k
Roth IRA
Traditional IRA
Brokerage
You are 22 years old. In general, how much of your portfolio should be invested in stocks (a risky asset)?
0-10%
90-100%
40-50%
150%
What is a good strategy to take care of your credit score?
Build an emergency fund
Pay off high-interest debt first
Invest in debt instruments (such as bonds)
Cancel your credit cards
What is a possible red flag among investment/finance "gurus"?
Clear credentials and qualifications
SEC license
Trying to sell you products
Fiduciary standard
What is a fiduciary's top priority?
Lower taxes for the client
The client's overall financial best interest
Maximizing the number of clients
Selling insurance
