Mutual Fund Quiz

What is a mutual fund?

• A type of investment where investors pool money to buy securities

• A savings account with a fixed interest rate

• A loan given to a corporation

• A type of insurance policy

How is the net asset value (NAV) of a mutual fund calculated?

• Assets - Liabilities + Number of outstanding shares

• Assets + Liabilities - Number of outstanding shares

• (Assets - Liabilities) / Number of outstanding shares

• (Assets + Liabilities) / Number of outstanding shares

What is the purpose of a mutual fund prospectus?

• To provide a list of all investors in the fund

• To outline how the fund operates and its goals

• To predict future stock market trends

• To offer tax advice to investors

Which type of mutual fund invests in stocks that pay regular dividends?

• Money Market Fund

• Growth Fund

• Income Fund

• Value Fund

What is dollar-cost averaging?

• Investing a lump sum all at once

• Dividing your investment over time

• Selling all investments during a market peak

• Buying only high-risk stocks

What does ETF stand for?

• Exchange-Traded Fund

• Equity-Traded Fund

• Electronic-Traded Fund

• Economic-Traded Fund

What is a common stockholder entitled to receive?

• Dividends

• Interest

• Bonds

• Commodities

What color represents a decreasing stock price?

• Red

• Green

• Blue

• Yellow

What is the role of the SEC in the stock market?

• To protect investors and monitor the market

• To increase stock prices

• To sell stocks

• To provide loans to companies

What is an IPO?

• Initial Public Offering

• International Public Offering

• Internal Private Offering

• Immediate Public Offering