Investing

Which of the following is the ownership of a corporation, indicated by shares, which represents a piece of the corporation’s assets and earnings?

• Stocks

• Mutual funds

• Bonds

• Cash

 Which of the following is the debt securities issued by a corporation or unit of government to raise money?

• Stocks

• Mutual funds

• Bonds

• Cash

The total of all of the securities, commercial paper, etc. of a financial institution or private investor is known as which of the following?

• Portfolio

• Trades

• Bull market

• Bear market

 Which of the following terms describes the leftover amount when liabilities or debts are subtracted from the assets owned?

• Portfolio

• Trades

• Net worth

• Bonds

 Which of the following is NOT a type of investment account discussed in this segment?

• Taxable account

• Income tax account

• Tax-deferred account

• Tax-exempt account  

Margaret, who is 60 years old, is changing her investment portfolio to one with less risk than she has had in the past. She is putting most of her money in cash investments such as money market funds and certificates of deposit. Which of the following best describes this scenario?

•  Low risk

•  Limited risk

• Moderate risk

• High risk

 Janet enjoys making investments which pay her money every so often in the form of interest or dividend payments so she invests her money in blue-chip companies and highly rated government bonds. Which of the following best describes this scenario?

• Low risk

• Limited risk

• Moderate risk

• High risk

 Trevor likes to identify small companies with new products which appear to have an appeal of a large base of potential customers. Once he identifies these companies, he likes to invest his money in them before the new products have had much time on the market. Which of the following best describes this scenario?

•  Low risk

• Limited risk

• Moderate risk

• High risk

Scott is in his 20s and never took time to learn much about investing before he started earning his own money. He wants to get rich as quickly as possible and is willing to take some risks to achieve his goal. Which of the following best describes this scenario?

• Low risk

• Limited risk

• Moderate risk

• High risk

Antonio is in his mid-20s and just starting out in his career with a company which offers a retirement plan. Which of the following is NOT the best investment choice for him over the next 20 years or so?

•  Speculative, high-risk investments

•  His company’s retirement plan

•  Monthly investments in a balanced mutual fund

•  Cash investments