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FL TEST 2
| Question | Answer |
|---|---|
| A _______ represents part ownership of a company. | stock |
| ____ stock allows you to vote at shareholder meetings. | Common |
| Stock is mostly bought and sold in a _______. | Stock exchange |
| How can investors make profits? | Stocks has to grow and then you have to sell it. / Dividends given to you from the company. |
| What are factors that affect the price of stock? | Supply and demand / public opinion / how well the company does |
| What is a bond and why do people buy them? | Buying a bond gives the company a loan / Safe investment / you get dividends and interests |
| A _______ invests in companies based on the stock price and is worried about the short term. | trader |
| When _____ increases, the purchasing power of the dollar decreases. | inflation |
| Why are mutual funds a good investment? | Automatically diversified / A professional helps you make / You don't have to watch the market everyday / You get a good return. |
| You should practice _______ or invest in a variety of assets to minimize risk. | diversification |
| A _______ is when a company pays investors part of its profit to encourage future investors to invest in their company. | dividend |
| An _______ researches companies and buys stocks based on a company's history in order to invest for the long term. | investor |
| ______ apps allow you to invest small amounts of money from purchases and other transactions. | Spare change |