Investments

Dollar cost averaging is used for investing in

stocks

Some people invest in collectibles such as paintings and coins as a strategy to accumulate wealth because

their limited availability is likely to increase its value

A person buys 100 shares of stock for $20 a share. The stock price today is $50. What is his capital gain per share?

zero

Which of the following is not true about bonds?

A bond is guaranteed by the securities and exchange commission (SEC)

State and federal governments tax people in order to

Have money to pay for services and projects

Too often, a person who is finding it difficult to pay monthly bills is also buying the newest products (cell phone, sneakers, clothing, video games etc.). This type of person is someone who

Is not managing money well

Which of the following is an investment product?

Money market mutual fund

A person received a dividend from the company in which he is a stockholder. A dividend is

a distribution to shareholders out of the company's profits

A young person is moving to a new job in a different state. This person will be advised to rent rather than buy because renting at home

allows the person to learn about the area before investing in a home

A strategy to reduce future payments on a federal college loans is to

consider getting a job in a career that qualifies for loan reduction

Many Americans are finding it difficult ti retire from the workforce because they

do not have enough savings for retirement

A person may be entitled to a tax refund if she

had more taxes deducted from her pay than necessary

An investor who wants an investment that offers tax-free interest income should choose a

municipal bond

One advantage of buying bonds is that they

pay 100% of the face value when they are held to maturity