Quiz 1

Read the following stock quote. How much is this stock worth?

$56.14

Choose all that apply. Select all of the common investment alternatives.

- Mutual fund - Retirement investments - Real estate - Stock

Choose all that apply. Select all of the advantages of a retirement account.

- Tax free until you withdraw money when you retire - Deposits may be matched by the company you work for - Money is taken out of your paycheck before you pay taxes on it.

Holly has many different types of investments. She does not understand a few of her investments. She is having a hard time figuring out their value and weather she should sell them. What principle of savings and investing should Holly have followed?

Keep investments simple.

The ease with which you can get your money out on an investment is known as its_______.

Liquidity

Miranda thinks she is ready to invest in the stock market. What should she do to prepare?

Miranda should be debt free, create an emergency fund, and learn how to invest and practice on it. To buy stock, open an account sign a broker by completing an application and depositing money. Then communicate directly with a broker about which stock you want to buy, or use an online tool to assist with the purchase.

A collection of money from a group of investors used to buy different stocks investments is a_______.

Mutual fund

Ray invested in two different bonds. Did he diversify?

No

Buying or selling stock is_______.

Trading

Investing in collect is very risky.

True

The stock market is_______.

An organized way for people to buy and sell stocks

The rate of return is the money that is returned to you when you sell an investment.

False

A stock table is used to_______.

Give you basic information and price history for stocks

Edmund would like to sell stock. What should he do?

He should communicate with his broker that he wants to sell.