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.

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

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question

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




Why do people now buy savings bonds?


As a high return part of your portfolio

As a gift, for a new baby or birthday




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)




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


TRUE FALSE




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




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




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




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




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


stocks bonds

collectibles futures




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




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




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


Mutual fund

bond

stock




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


TRUE FALSE




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


An indexAfter market trading

Dollar cost averaging

A mutual fund




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




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


A stated common theme

A fixed return

a good accountant




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


TRUE FALSE




You don’t lose

anything until to sell

it!

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


58

6872

64




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




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




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




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


Money market account

compounding Rule of 72




When is the stock market open?


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




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




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




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




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


Bull market

Bear market




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




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


TRUE FALSE




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




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.


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!


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.

Documents

investing risk

downside of investing

benefit of investing

stock market

stock brokerwhat

lot of money

bunch of money

high return