Financial Markets Mod

What is an investment?

• Spending money on things you want right now
• The act of redirecting resources to create future benefits
• Putting all your money in a piggy bank
• Trading items with friends

Which of these is considered the safest type of bond?

• Corporate bonds
• Junk bonds
• Municipal bonds
• U.S. Savings bonds

What is diversification in investing?

• Buying only one type of investment
• Investing in different things to reduce risk
• Putting all your money in a savings account
• Lending money only to friends

What happens in a "bull market"?

• The stock market stays the same
• The stock market drops steadily
• The stock market rises steadily
• The stock market closes down

What is a stockbroker?

• Someone who fixes broken stocks
• A person who owns a company
• Someone who helps people buy and sell stocks
• A person who works at a bank

What are dividends?

• A type of bank account
• Money lost in the stock market
• A share of a company's profits paid to stockholders
• The cost of buying stocks

Which of these has the lowest risk?

• Junk bonds
• Savings account
• Day trading
• Stock options

What is a mutual fund?

• A type of savings account
• Money shared between friends
• An organization that pools money from many people to invest
• A government loan

What happens in a stock split?

• The company goes out of business
• The stock price doubles
• One share becomes multiple shares
• The company changes its name

What is a capital gain?

• Money earned when selling something for more than you paid
• Money lost in the stock market
• A type of government bond
• The original cost of an investment