Stock Market Test
True
Corporations can be private or publicly-owned.
Brands
Doritos, M&Ms, and Mountain Dew are examples of.
Good advice to an investor is to always sell when your stock value drops.
False
Investing in mutual funds requires more money than stocks.
False
To be diversified, a portfolio must hold stocks from all three stock exchanges.
False
You should never hold any stock for more than ten years.
False
$600
If you bought 200 shares of YUMMY at $45 per share and sold YUMMY for $48 per share, how much money did you make?
Total number of shares traded.
In a stock quote, volume means.
Dan's broker advised him to invest in companies in several different _________ which will diversify his portfolio.
Industries
Which of the following team portfolios is the most diversified?
Jamie's team with 10 different mutual funds.
Diversification
Jenny's investments includes cash, stocks, mutual funds, and bonds.
If you have a diversified portfolio, you are at _______risk of losing your money.
Less
Misty is willing to take ______ risk so she can get greater return on her investment.
More
When researching stock and mutual fund data, you can find.
More information on the internet.
__________ is the total earnings for a company after all expenses and taxes have been paid by a corporation.
Net income
True
Not all companies publicly trade stock.
False
Only rich people invest in the stock market.
Profit
Patrick bought 10 shares of stock in Mattel Corporation for $12.00 per share. 2 years later he sold the 10 shares for $15.00 per share. What did Patrick make.
Parent, Products
Pepsi-co is a ________ company that sells _______ like chips, soft drinks, and juices.
IPO ( Initial Public Offering)
Private company offering shares to public.
How well the stock market is doing.
The DOW is followed by investors to tell them.
Stock exchanges
The NYSE, AMEX, and NASDAQ are.
Risk
The chance of losing all or part of your investment.
Ticker Symbol
The letters that identify a stock for investors.
Stock prices will rise when
There are more buyers than sellers.
Delisted
This stock is no longer traded on the stock exchanged.
A _____ is an IOU that a company or government sells when it borrows money.
bond
Good advice to investors is to
buy low, sell high
"Don't put all your eggs in one basket" is advice to.
diversify your portfolio
Close end funds
fixed number of shares
If the "Kids are Us" company reports that it will have to stop making its best selling toy because it breaks too easily, this will likely cause its stock to
go down
When a company's product suddenly become more popular with consumers, it's stock value is likely to
go up
Investors have three options: to buy, sell or ____ stock in their portfolio.
hold
AT & T's annual report will tell investors what the company does and
its earnings
Abe bought 20 shares of CASA stock for $15 per share. He later sold his 20 shares of CASA stock a $8 per share. Abe had a
loss of $140
NAV stands for:
net asset value
When you research, you should compare a company with
other companies in the same industry
If more people want to buy a stock than want to sell it, then that stock
price will go up
The advice to "buy low and sell high" refers to:
stocks
Investors like to buy mutual funds because
they have managers who do the research of stocks in the fund
Open End Funds
unlimited number of shares
The S & P 500 index is
500 stocks of large companies
Conservative
A ________ investor is one who doesn't like to take risks.
Profit
A company is a business that sells products or provides services.
Belongs to a larger company
A company is a subsidiary.
Rule of 72
A formula to estimate how long to double your investment.
An industry
A group of companies producing a similar product or service.
Companies
A partnership, corporation and proprietorship is forms of.
False
All stocks must pay dividends.
NAV ( Net Asset Value)
Assets-liabilities divided by shares.
Mutual funds are a good investment for investors with a low risk tolerance.
True
Owning mutual funds helps to diversify your portfolio.
True
The mutual fund manager decides when to buy and sell stock within the mutual fund.
True
Using mathematics, you can determine the change in a stock price.
True
You can find Thursday's stock closing price for Microsoft in Friday's newspaper.
True
Issues stock for investors
When a company "goes public", what does it do?
Company profits
When an investor receives a dividend, that money comes from.
Part-owner
When you buy a share of stock in a public company, you become a _________ of the company.
A company's annual report can often be found on the internet.
True
A mutual fund is an investment company that pools savers" money to invest in a variety of stocks and bonds.
True
Consumers wants and needs cause stock prices to go up or down.
True
Current events can have an effect o the stock market.
True
If a bad event happens to Delta Airlines, it can affect other airline companies.
True
Investing in the stock market can be risky.
True
