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5 Written questions

5 Matching questions

  1. capital gains
  2. common stock
  3. diversification
  4. bull market
  5. limit order
  1. a an order to purchase stocks at a specified price
  2. b money that is made by selling an asset like a home or stocks
  3. c stock prices are rising, investors are optimistic
  4. d to buy a variety of stocks or other investments to spread risk
  5. e shares of ownership in a corporation that give stockholders voting rights and a portion of future profits (after holders of preferred stock are paid)

5 Multiple choice questions

  1. certificates of ownership of a portion of a debt that is due to be paid by a government/corporation to an individual; usually bearing a fixed rate of interest
  2. the investment value of each share of a mutual fund, or the pirce per share that you can buy a fund
  3. the largest stock exchange, located in New York
  4. the money from profits of a company that is paid to the stockholders
  5. the price of the stocks divided by the earnings the company made for the last year. Listed in most stock quotes, it is used to determine how cheap or expensive a stock is compared to other stocks

5 True/False questions

  1. Dow Jones Industrial Averagea measure of stock market prices based on thirty leading companies of the New York Stock Exchange


  2. fraud riskstocks are usually purchased in multiples of 100 shares, called _________.


  3. initial public offeringthe process through which companies obtain money to expand their businesses through stocks and bonds


  4. liquidityan investment that is easily converted into cash


  5. bear marketstock prices are falling, investors are pessimistic