Financial Literacy Test
A tombstone ad is prepared for companies that are facing bankruptcy and financial failure
False
If it possible for shareholders to lose money in addition to the amount they invested, if a company fails
False
Investment bankers buy shares of stock on the same type of market that the general public does
False
Profits represent ownership of shares of a company
False
Risk is only associated with the purchase of common stocks
False
The general public buys new issues of stock on the primary market
False
People who invest in the stock market will automatically make money
True
Preferred stock means the company is preferred over other companies in a particular industry
True
Shareholders can only make money by collecting dividends
True
You can only buy stock in publicly held companies
True
A dividend is a portion of the company's profits paid to its share holders
Truth
A person who is 25 should not be willing to take the same amount of risk when investing as someone who is 55
Truth
