Unit 5 Quiz 3
_______ funds were created to pool investors' money and encourage small, periodic investments.
Mutual
Which answer is NOT a reason stocks generally appreciate in value over time?
Over time, most investors hold on to stocks, creating scarcity and driving up prices.
A legal ______ is a group or organization recognized by the government as such.
entity
A good ______ advisor can help you wisely manage your investments.
financial
A(n) ___ is an example of a commodity.
gallon of milk
When interest rates go down, bond fund prices go up because ___.
investors will pay more for older bonds with higher interest rates
Investors who take too little risk might _____.
lose purchasing power and miss out on the power of compound interest
A(n) ______ company does not have or allow trading of its ownership by stockholders.
private
A(n) ______ traded company issues shares of ownership through stock offerings.
publicly
Which of the following was the price of MCD at the start of the trading day?
$113.72 113.29(0.0038) + 113.29
An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission. What is the total amount of money received by the investor?
$5,243 150(35) - 7
Match the statements with the accounts, exchanges, and indexes. 1. The stock performance of hundreds of America's largest companies are tracked by this index. 2. This basket of stocks or other investments may be traded in real time just like a stock. 3. Employers can match employee contributions to retirement savings. 4. This electronic stock exchange is home to many large technology company stocks. 5. Earnings from this account are not subject to tax if withdrawn after age 59 ½. 6. This stock exchange specializes in agricultural financial investments. 7. This account allows individuals with income to make tax-deferred investments for retirement. 8. The world's largest stock exchange is in America's largest city. 9. This index tracks 30 of the most important U.S. companies.
1. Standard & Poor's 500 Index 2. exchange-traded fund (ETF) 3. 401(k) savings plan 4. NASDAQ 5. Roth individual retirement account 6. Chicago Mercantile Exchange 7. individual retirement account (IRA) 8. New York Stock Exchange 9. Dow Jones Industrial Average
Match the statements with the business structures. 1. The work, risk, losses, and profits are divided between multiple owners. 2. Small businesses are the likely beneficiaries of this business structure that protects the owner from personal liability. 3. The owner has freedom, but also has trouble getting loans and is subjected to personal liability. 4. Stockholders who own the company are not directly liable for company actions.
1. partnership 2. limited liability company (LLC) 3. sole proprietorship 4. corporation
Most investors use a ____ to handle investment transactions, track investments, and receive statements on a regular basis.
brokerage
A(n) _____ is a charge for a financial transaction or advice.
commission
A(n) ______ is interchangeable with other goods of the same kind.
commodity
Businesses have a legal responsibility to make certain accommodations for ____ customers.
disabled
Dividing your money among multiple investments is the principle of ___.
diversification
A company may pay a(n) ______ out of earnings to stockholders.
dividend
A bond issued and backed by the government is called a government ______.
security
The price of a(n) ____ represents investors' collective expectations of a company's future growth and profits.
stock
A marketplace where stocks are bought and sold is a(n) ______.
stock exchange