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Investment Unit
20/21st - Davis - SVHS - Investment Unit Test
| Question | Answer |
|---|---|
| Profit made from securities. | capital gain or return |
| Nationally known compainies, quality, known for ability to earn profits. | Blue Chip |
| The rate at which prices are rising. | Inflation |
| Name for a share of profits given to investors, don't have to sell stock. | Dividends |
| An I.O.U. issued by the government or a corporation to lenders. It promises to repay a loan in a certain amount of time at a specified interest rate. Does not grant ownership. | Bond |
| A word that means stocks and bonds. | securities |
| Something of value held by a company or an individual. (Paid off car or building) | asset |
| Any and all debts owed by person or company. | liabilities |
| Type of market in which prices are generally going down in value. | Bear |
| Type of market in which prices are generally going up in value. | Bull |
| The amount of money an investor receives from an investment is often called what? | return or capital gain |
| The financial center of the United States. | Wallstreet |
| The money needed to start or expand a business. Can also refer to tools, machinery, or materials. | Capital |
| An attempt to use money to make money. Generally applies to long and gradual process. | Investment |
| An investment group with holdings in a wide variety of securities, expert money managers, individuals may buy shares in this company. Benefit is less risk, professional guidance. | Mutual Fund |
| You wish to purchase $2000 worth of stock in a company that has shares selling at $10 per share. How many shares would you purchase? | 200 |
| You purchase 100 shares of stock in IBM at $5 per share. After 6 months the value of each share is $7. How much PROFIT would you gain if you chose to sell your 100 shares? | $200 |
| Generally, investors can expect to double their investment in ____ years if the rate of return is 10% | 7 years |
| If you receive 10% return on a $5000 investment in 1 year, how much money did you earn? | $500 |
| Which type of investment has the greatest risk? Bonds....CD's....Stocks? | Stocks |