Investing Review
Quiz by Rebecca Booth
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50 questions
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- Q1Using a brokerage firm, a qualified investor buys 1000 shares of a common stock at $50 a share on 50% margin. This means that the…Brokerage firm is lending the investor 50% of the money.Investor is buying 2000 sharesInvestor will pay only $5000 for the sharesBrokerage firm will own 50% of the 1000 shares of the stock that were purchased.30s
- Q2Before the Kiss Corporation can issue stocks or bonds, it must register the issue with:The World BankThe Securities & Exchange Commission (SEC)Its Board of DirectorsThe Federal Reserve30s
- Q3Buying a treasury bill (T-bill) is best for investors who are looking forAn investment that matures in 10-30 yearsA place to invest between $100-$500A secure, low risk investmentA higher yield on their investment than corporate bonds offer30s
- Q4As an investment, a person decides to buy a small house that has three rental apartments. The profits from this investment may be lower than expected if the…Taxes on the house are loweredMortgage on the house is paid offTenant in an apartment decides to paint the hallwaysOne of the apartments is not rented30s
- Q5A pharmacy is to drugs as the American Stock Exchange is to…Stock AdvisorsInterestSecuritiesMutual Funds30s
- Q6What is the largest equities market in the world?NASDAQ marketAmerican Stock Exchange (AMEX)Over-the-counter (OTC) marketNew York Stock Exchange (NYSE)30s
- Q7The interest earned on a United States Series EE Savings Bonds isExempt from state and local taxesDeducted at the time of the bond’s purchaseEqual to the money paid to purchase itPaid in a lump sum at the time the face value on the bond is reached30s
- Q8A person owns a stock that pays $2.00 a share dividend. If the person chooses to reinvest that dividend, this means that the $2.00 will go towards buying…Stocks that are similar to those already ownedPreferred stock in the corporationMore of the same stockBonds in the corporation30s
- Q9An investor bought 40 shares of ABC corporation’s stock at $80 a share. Two weeks later the investor receives notice that the corporation has approved a 2-for-1 stock split. Based on this information, the investor would own at the moment of the split…80 shares of the stock and the price of each share is $4080 shares of the stock and the price of each share is $80.40 shares of the stock and the price of each share is $4020 shares of the stock and the price of each share is $8030s
- Q10Chris bought stock for $4,000 and one year later he sold it for $5,000. His sale resulted in a :YieldMarket valueCapital gainNet profit30s
- Q11Matthew and Alicia just had a baby. They received money as baby gifts and want to put it away for the baby’s college tuition. Which of the following has the lowest potential growth rate over the next 18 years?Common StocksSavings accountU.S. Government Savings BondsCertificate of Deposit30s
- Q12When John bought a Microsoft bond, he was:Investing in a liquid instrumentLending money to MicrosoftBuying part ownership of MicrosoftBorrowing money from Microsoft30s
- Q13The phrase “don’t put all your eggs in one basket” describes the following investment strategy?DiversificationPoolingLiquidityReturn on Investment30s
- Q14Which of the following investment products is guaranteed by the federal government?Common stockPreferred StockCorporate BondsUS Treasury Notes30s
- Q15When an investment company raises money from investors and invests the money in stocks, bonds, or other securities, the investment instrument is called a:Mutual fundGovernment BondCorporate BondStock30s