1. QUIZ Fundamentals of Investing

2. Question 1 A true fact about investing is:
If you haven’t saved any money by now, it’s too late.
It is not wise to take advantage of savings plans offered by your employer.
A return is a reward on your investment
You should avoid mutual funds whenever possible.

3. CORRECT!

4. INCORRECT!

5. Question 2 Capital Gains is:
The tax you are required to pay on an investment.
The amount by which the proceeds from the sale of stock exceed its original purchase price.
The amount by which the proceeds from the sale of stock is less than the purchase price.
A dividend.

6. CORRECT!

7. INCORRECT!

8. Question 3 The New York Stock Exchange (NYSE)
Is the dominant organized exchange
Transactions occur through an auction process
The “floor” is the size of a football field
Charges a listing fee of $150,000 to $250,000 to firms who list their stock
All of the above

9. Read on….

10. CORRECT!

11. Question 4 Types of investments include:
Money Markets
Treasury Bills
All of the above
Stocks
Bonds
Real Estate

12. CORRECT!

13. Read on….

14. Question 5 Diversification:
A. Includes a number of different investment vehicles in a portfolio
B. Reduces risk and increases returns
C. Is usually not recommended
D. All of the above
E. Only A & B

15. Read on….

16. CORRECT!

17. Bonus Question Marcie bought 5 shares of stock at $20 per share
Bonus Question Marcie bought 5 shares of stock at $20 per share. One year later she sold all 5 shares for a total of $200. What is her capital gain or loss?
$0, she broke even
$100 loss
$100 gain
$500 gain

18. CORRECT!

19. INCORRECT!

20. End of Quiz