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.

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Online Investing Review

Personal Finance

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!

Personal Finance Investing Review

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review

I don’t need to review, I know it all

You are wrong! Good try. Go back to the question and try again!

Personal Finance Investing Review

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question

Who buys CD’s as an investment?

Personal Finance Investing Review

Old people looking for

a stable return

Young people who

are risk takers

Anyone who wants a high

return on their investment

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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What is the downside of investing in Treasury bills?

Personal Finance Investing Review

There is none, everyone should

buy them

They are hard to

understand

Only smart investors should

buy them

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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Why do people now buy savings bonds?

Personal Finance Investing Review

As a high return part of your portfolio

As a gift, for a new baby or birthday

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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What is the lowest price that a stock can go to?

Personal Finance Investing Review

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)

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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

Personal Finance Investing Review

TRUE FALSE

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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Which one of these is NOT an advantage of buying a mutual fund?

Personal Finance Investing Review

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

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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What is the main reason that people learn about investing?

Personal Finance Investing Review

They have extra time and enjoy

it

To make money and

retire

To get a job as a stock broker

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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What is stock?

Personal Finance Investing Review

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

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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What is the benefit of investing in an annuities?

Personal Finance Investing Review

Guaranteed money until you

die

You have control

what you invest in

If you retire early, you still get a large pay out

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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

Personal Finance Investing Review

stocks bonds

collectibles futures

Correct!!! Good work, go to the next question!

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How much money do financial planners say you should have to be able to retire comfortably?

Personal Finance Investing Review

$500,000

Can’t say without knowing the

individual

$3 million

$1 million

Correct!!! Good work, go to the next question!

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If a company goes out of business, who gets paid first?

Personal Finance Investing Review

Most employees

Bond holders

People that own stock

Anyone who invests in the

company stock

Correct!!! Good work, go to the next question!

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The best investment to buy, if you want to spread your risk across out is a …?

Personal Finance Investing Review

Mutual fund

bond

stock

Correct!!! Good work, go to the next question!

Personal Finance Investing Review

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

Personal Finance Investing Review

TRUE FALSE

Correct!!! Good work, go to the next question!

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Which of these is an indicator of how well a specific part of the market is doing?

Personal Finance Investing Review

An indexAfter 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…?

Personal Finance Investing Review

bond

Option contract

Treasury note

stocks

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Mutual funds can invest in anything, as long as they have what?

Personal Finance Investing Review

A stated common theme

A fixed return

a good accountant

Correct!!! Good work, go to the next question!

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

Personal Finance Investing Review

TRUE FALSE

Correct!!! Good work, go to the next question!

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You don’t lose

anything until to sell

it!

According to government statistics, what is the average age that people retire at?

Personal Finance Investing Review

58

6872

64

Correct!!! Good work, go to the next question!

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Figure the annual payment you receive if you own the following bond?

$5,000 par at 3% for 20 years

Personal Finance Investing Review

$3,000

$150 $300

$450

Correct!!! Good work, go to the next question!

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If you own a stock, how do you get to have a say in how the company is run?

Personal Finance Investing Review

Attend the annual

shareholders meeting

Attend the board of directors meeting

Just show up at the company and they will

let you in

Correct!!! Good work, go to the next question!

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When a company issues more stock to the public, what is the benefit for the company?

Personal Finance Investing Review

To get more

shareholders Have more money

to fund projects

To allow new and different voices

have a say in the company

Correct!!! Good work, go to the next question!

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What is the financial concept that let’s your interest make more interest for you?

Personal Finance Investing Review

Money market account

compounding Rule of 72

Correct!!! Good work, go to the next question!

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When is the stock market open?

Personal Finance Investing Review

8:30 AM to 4:30 PM Eastern

time9:30 AM to

4:00 PM Central

time

9:00 AM to 3:30 PM Eastern

time9:30 AM to

4:00 PM Eastern

time

Correct!!! Good work, go to the next question!

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What is the average rate of return on the stock market?

Personal Finance Investing Review

3% - 5½%

6 ¾ % - 8%

8 ½ % - 11%

Impossible to tell without

knowing which stock it is

Correct!!! Good work, go to the next question!

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What is it called when you get a check from a company for simply owning the stock?

Personal Finance Investing Review

An index

Initial public

offering

dividend

A stock payment

Correct!!! Good work, go to the next question!

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When a company has an initial public offering, what are they doing?

Personal Finance Investing Review

Trading their stock for the first

time

Issuing more stock

to investors

Selling bonds to raise more money

Correct!!! Good work, go to the next question!

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

Personal Finance Investing Review

Bull market

Bear market

Correct!!! Good work, go to the next question!

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What is a dividend payment an indicator of?

Personal Finance Investing Review

More people want to buy the

stock

The company needs sell

more bonds

How well the

company is doing

Correct!!! Good work, go to the next question!

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

Personal Finance Investing Review

TRUE FALSE

Correct!!! Good work, go to the next question!

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What is the LAST payment you would receive if you owned the following bond?

$2,000 par @ 4% for 15 years

Personal Finance Investing Review

$80

$2,000

$1,200

$2,080

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On the last payment they

have to pay you back the original amount, plus the interest they owe

you

Good luck on your test! Make sure to understand:Stock splits (and how to figure)How to start a mutual fundWhy you buy a mutual fund

You don’t have to know Dollar Cost Averaging.

Personal Finance Investing Review

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!

Personal Finance Investing Review

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