Summary Investing & Financial Markets quiz (2)
answered correctly.
Capital appreciation refers to-
the increased value of an asset.
the ability to make a profit from owning stock.
the distribution of earnings to shareholders.
the profitable sale of shares.
the increased value of an asset.
Which factors can affect a stock's price? Check all that apply.
market performance
the company's financial health
the quantity products produced
location of the company
the economy
market performance
the company's financial health
the economy
Which is true about investments and risk?
Low-risk investments have a high return over the long run.
High-risk investments usually fail.
Safe investments are always somewhat profitable.
Every investment carries some degree of risk.
Every investment carries some degree of risk.
What is one way in which bonds do not generate income for investors?
Bonds appreciate in value.
Bonds pay interest.
, Bonds pay a specified amount at maturity.
Bonds pay dividends.
WRONG Bonds pay a specified amount at maturity.
Which statement best describes how an investor makes money off debt?
An investor makes money by issuing bonds.
An investor makes money by earning interest.
An investor makes money by raising capital.
An investor makes money by being repaid for the principal.
An investor makes money by earning interest.
Which are common types of bonds that are currently issued? Check all that
apply.
corporate bonds
equity bonds
municipal bonds
Treasury bills
Treasury notes
war bonds
corporate bonds
municipal bonds
Treasury bills
Treasury notes
If a company pays dividends on a stock, does that mean that the stock has
appreciated in value? Why or why not?
Yes, the payment of dividends indicates that a stock's value has increased.
No, the payment of dividends indicates that a company has earned profits.
Yes, the payment of dividends indicates that a company's assets have grown.
No, the payment of dividends indicates that a company can repay investors.
No, the payment of dividends indicates that a company has earned profits.
answered correctly.
Capital appreciation refers to-
the increased value of an asset.
the ability to make a profit from owning stock.
the distribution of earnings to shareholders.
the profitable sale of shares.
the increased value of an asset.
Which factors can affect a stock's price? Check all that apply.
market performance
the company's financial health
the quantity products produced
location of the company
the economy
market performance
the company's financial health
the economy
Which is true about investments and risk?
Low-risk investments have a high return over the long run.
High-risk investments usually fail.
Safe investments are always somewhat profitable.
Every investment carries some degree of risk.
Every investment carries some degree of risk.
What is one way in which bonds do not generate income for investors?
Bonds appreciate in value.
Bonds pay interest.
, Bonds pay a specified amount at maturity.
Bonds pay dividends.
WRONG Bonds pay a specified amount at maturity.
Which statement best describes how an investor makes money off debt?
An investor makes money by issuing bonds.
An investor makes money by earning interest.
An investor makes money by raising capital.
An investor makes money by being repaid for the principal.
An investor makes money by earning interest.
Which are common types of bonds that are currently issued? Check all that
apply.
corporate bonds
equity bonds
municipal bonds
Treasury bills
Treasury notes
war bonds
corporate bonds
municipal bonds
Treasury bills
Treasury notes
If a company pays dividends on a stock, does that mean that the stock has
appreciated in value? Why or why not?
Yes, the payment of dividends indicates that a stock's value has increased.
No, the payment of dividends indicates that a company has earned profits.
Yes, the payment of dividends indicates that a company's assets have grown.
No, the payment of dividends indicates that a company can repay investors.
No, the payment of dividends indicates that a company has earned profits.
