Quiz about Vocabulary: Investing

Question 1

A measurement of the likelihood that a bondholder will be paid back.

Accepted Answer

Bond Rating

Answer

Compound Interest

Answer

Capital Gain

Answer

Municipal Bond

Question 2

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year.

Accepted Answer

Traditional IRA

Answer

Roth IRA

Answer

Mutual Fund

Answer

Pension

Question 3

An application that allows users to regularly save small sums of money.

Accepted Answer

Micro-Investing Platform

Answer

Asset Allocation

Answer

Stock Exchange

Answer

Investing

Question 4

The rate at which the price of goods increases and consumer purchasing power decreases over time

Accepted Answer

Inflation

Answer

Diversification

Answer

Investing

Answer

Compound Interest

Question 5

The annual interest payment on a bond, usually expressed as a percentage of its face value

Accepted Answer

Coupon

Answer

Dividend

Answer

Bond

Answer

Pension

Question 6

Market value of a company's outstanding shares calculated by multiplying the current share price by number of shares outstanding

Accepted Answer

Market Capitalization

Answer

Insider Trading

Answer

Inflation

Answer

Portfolio

Question 7

Degree of uncertainty on how likely the investor is to make money on an investment

Accepted Answer

Risk

Answer

Inflation

Answer

Stock

Answer

Dividend

Question 8

A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks

Accepted Answer

Index Fund

Answer

Municipal Bond

Answer

Mutual Fund

Answer

Bond

Question 9

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company

Accepted Answer

Stock

Answer

Dividend

Answer

Bond

Answer

Mutual Fund

Question 10

A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date is called:

Accepted Answer

Bond

Answer

Mutual Fund

Answer

Stock

Answer

Dividend

Question 11

Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash is known as:

Accepted Answer

Asset Allocation

Answer

Asset Class

Answer

Stock Exchange

Answer

Diversification

Question 12

A market in which there is increased stock trading and rising stock prices is referred to as:

Accepted Answer

Bull Market

Answer

Inflation

Answer

Capital Gain

Answer

Dividend

Question 13

The illegal act of trading a company's stock using information that is not available to the public is known as:

Accepted Answer

Insider Trading

Answer

Investment Management

Answer

Asset Allocation

Answer

Diversification

Question 14

An employer contribution made to their employees' 401(k) plan based on individual employee's contributions is called:

Accepted Answer

401(K) Match

Answer

exchange-traded fund (etf)

Answer

traditional Ira

Answer

traditional 401(k) plan

Question 15

The ratio of money gained or lost on an investment relative to the amount of money invested; also known as return on investment (ROI) is:

Accepted Answer

Rate Of Return

Answer

Capital Gain

Answer

Inflation

Answer

Dividend

Question 16

The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk is known as:

Accepted Answer

Diversification

Answer

Investing

Answer

Market Capitalization

Answer

Asset Allocation

Question 17

Reinvesting earned interest back into the principal to allow money to grow exponentially over time is called:

Accepted Answer

Compound Interest

Answer

Rate Of Return

Answer

Inflation

Answer

Investing

Question 18

The second largest stock exchange in the world behind the NYSE is:

Accepted Answer

Nasdaq

Answer

Dividend

Answer

S&P 500

Answer

Stock

Question 19

The rate of return that accounts for inflation and taxes is known as:

Accepted Answer

Real Rate of Return

Answer

Nominal Rate of Return

Answer

Investing

Answer

Interest Rate Risk Premium

Question 20

A market in which prices are falling, encouraging selling, is called:

Accepted Answer

Bear Market

Answer

Stock

Answer

Capital Gain

Answer

Dividend

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