Online Investing Review
Welcome to the review for your investing test. Work through the questions. If there is anything you don’t understand, ask Mr. Campbell. If you are good with most of these questions, you should be good for the test tomorrow. Click the box below to begin! Click here to begin the review I don’t need to review, I know it all
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Who buys CD’s as an investment? Old people looking for a stable return Young people who are risk takers Anyone who wants a high return on their investment
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What is the downside of investing in Treasury bills? There is none, everyone should buy them They are hard to understand Only smart investors should buy them
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Why do people now buy savings bonds? As a high return part of your portfolio As a gift, for a new baby or birthday
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What is the lowest price that a stock can go to? It can go as low as $1.00 I can’t answer this without knowing what stock it is It can go as low as zero ($0)
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When investing in options, you don’t make a lot of money, and the risk is not that great TRUE FALSE
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Which one of these is NOT an advantage of buying a mutual fund? Most of the time they are run by average people You spread your investing risk across many stocks The investment steadily goes up over time
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What is the main reason that people learn about investing? They have extra time and enjoy it To make money and retire To get a job as a stock broker
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What is stock? Partial ownership in a company Money you loan to a company that has a fixed return back A high risk investment that rarely goes down in value
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What is the benefit of investing in an annuities? Guaranteed money until you die You have control what you invest in If you retire early, you still get a large pay out
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You are an 80 year old person, what type of investments should you in? stocksbonds collectiblesfutures
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How much money do financial planners say you should have to be able to retire comfortably? $500,000 Can’t say without knowing the individual $3 million $1 million
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If a company goes out of business, who gets paid first? Most employees Bond holders People that own stock Anyone who invests in the company stock
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The best investment to buy, if you want to spread your risk across out is a …? Mutual fund bond stock
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When the stock market is going down, it is said to be a “Bull market” TRUE FALSE
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Which of these is an indicator of how well a specific part of the market is doing? An index After market trading Dollar cost averaging A mutual fund
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If you own a debt that a company agrees to repay at a certain time with a fixed rate of return, then you own a…? bond Option contract Treasury note stocks
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Mutual funds can invest in anything, as long as they have what? A stated common theme A fixed return a good accountant
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If you buy a stock and it goes way down, you have lost a bunch of money? TRUEFALSE
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According to government statistics, what is the average age that people retire at?
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Figure the annual payment you receive if you own the following bond? $5,000 par at 3% for 20 years $3,000 $150 $300 $450
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If you own a stock, how do you get to have a say in how the company is run? Attend the annual shareholders meeting Attend the board of directors meeting Just show up at the company and they will let you in
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When a company issues more stock to the public, what is the benefit for the company? To get more shareholders Have more money to fund projects To allow new and different voices have a say in the company
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What is the financial concept that let’s your interest make more interest for you? Money market account compounding Rule of 72
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When is the stock market open? 8:30 AM to 4:30 PM Eastern time 9:30 AM to 4:00 PM Central time 9:00 AM to 3:30 PM Eastern time 9:30 AM to 4:00 PM Eastern time
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What is the average rate of return on the stock market? 3% - 5½% 6 ¾ % - 8% 8 ½ % - 11% Impossible to tell without knowing which stock it is
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What is it called when you get a check from a company for simply owning the stock? An index Initial public offering dividend A stock payment
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When a company has an initial public offering, what are they doing? Trading their stock for the first time Issuing more stock to investors Selling bonds to raise more money
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When the stock market goes down, it is said to be what type of market? Bull market Bear market
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What is a dividend payment an indicator of? More people want to buy the stock The company needs sell more bonds How well the company is doing
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There are currently more mutual funds available to trade than stocks. TRUEFALSE
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What is the LAST payment you would receive if you owned the following bond? $2,000 4% for 15 years $80 $2,000 $1,200 $2,080
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Good luck on your test! Make sure to understand: Stock splits (and how to figure) How to start a mutual fund Why you buy a mutual fund You don’t have to know Dollar Cost Averaging. Click for more info
Good luck on your test! Review your notes! Bring the handouts about Risk levels and Retirement It’s not hard if you prepare! Good Luck May the force be with you!