1. Online Investing Review

2. 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

3. You are wrong! Good try. Go back to the question and try again! Click here to go back to the question

4. 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

5. Correct!!! Good work, go to the next question! Click here for the next question

6. 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

7. Correct!!! Good work, go to the next question! Click here for the next question

8. Why do people now buy savings bonds? As a high return part of your portfolio As a gift, for a new baby or birthday

9. Correct!!! Good work, go to the next question! Click here for the next question

10. 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)

11. Correct!!! Good work, go to the next question! Click here for the next question

12. When investing in options, you don’t make a lot of money, and the risk is not that great TRUE FALSE

13. Correct!!! Good work, go to the next question! Click here for the next question

14. 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

15. Correct!!! Good work, go to the next question! Click here for the next question

16. 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

17. Correct!!! Good work, go to the next question! Click here for the next question

18. 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

19. Correct!!! Good work, go to the next question! Click here for the next question

20. 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

21. Correct!!! Good work, go to the next question! Click here for the next question

22. You are an 80 year old person, what type of investments should you in? stocksbonds collectiblesfutures

23. Correct!!! Good work, go to the next question! Click here for the next question

24. 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

25. Correct!!! Good work, go to the next question! Click here for the next question

26. 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

27. Correct!!! Good work, go to the next question! Click here for the next question

28. The best investment to buy, if you want to spread your risk across out is a …? Mutual fund bond stock

29. Correct!!! Good work, go to the next question! Click here for the next question

30. When the stock market is going down, it is said to be a “Bull market” TRUE FALSE

31. Correct!!! Good work, go to the next question! Click here for the next question

32. 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

33. Correct!!! Good work, go to the next question! Click here for the next question

34. 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

35. Correct!!! Good work, go to the next question! Click here for the next question

36. Mutual funds can invest in anything, as long as they have what? A stated common theme A fixed return a good accountant

37. Correct!!! Good work, go to the next question! Click here for the next question

38. If you buy a stock and it goes way down, you have lost a bunch of money? TRUEFALSE

39. Correct!!! Good work, go to the next question! Click here for the next question You don’t lose anything until to sell it!

40. According to government statistics, what is the average age that people retire at? 58 68 72 64

41. Correct!!! Good work, go to the next question! Click here for the next question

42. 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

43. Correct!!! Good work, go to the next question! Click here for the next question

44. 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

45. Correct!!! Good work, go to the next question! Click here for the next question

46. 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

47. Correct!!! Good work, go to the next question! Click here for the next question

48. What is the financial concept that let’s your interest make more interest for you? Money market account compounding Rule of 72

49. Correct!!! Good work, go to the next question! Click here for the next question

50. 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

51. Correct!!! Good work, go to the next question! Click here for the next question

52. 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

53. Correct!!! Good work, go to the next question! Click here for the next question

54. 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

55. Correct!!! Good work, go to the next question! Click here for the next question

56. 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

57. Correct!!! Good work, go to the next question! Click here for the next question

58. When the stock market goes down, it is said to be what type of market? Bull market Bear market

59. Correct!!! Good work, go to the next question! Click here for the next question

60. 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

61. Correct!!! Good work, go to the next question! Click here for the next question

62. There are currently more mutual funds available to trade than stocks. TRUEFALSE

63. Correct!!! Good work, go to the next question! Click here for the next question

64. What is the LAST payment you would receive if you owned the following bond? $2,000 par @ 4% for 15 years $80 $2,000 $1,200 $2,080

65. Correct!!! Good work, go to the next question! Click here for the next question On the last payment they have to pay you back the original amount, plus the interest they owe you

66. 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

67. 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!