stock market review
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Stock Market Review. The highest Morningstar rating is. *. ****. *****. . If an investor can earn 9 percent on an investment, approximately how long will it take to double in value?. 72 months. 8 years. 9 years. 12 years. Which statement is true about mutual funds?. - PowerPoint PPT PresentationTRANSCRIPT
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Stock Market Review
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The highest Morningstar rating is
**********
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If an investor can earn 9 percent on an investment, approximately how long will it take to double in value?
72 months
8 years
9 years
12 years
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Which statement is true about mutual funds?
You can choose which securities to include in your mutual funds
Mutual funds offer guaranteed returns
Mutual funds are convenient and professionally managed
All mutual funds buy stocks
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Generally, a portfolio that has 80% of its assets in stocks would be best suited for:
A 18-yr-old using the assets to pay for college expenses over the next 4 years.
A 35-yr-old investing for retirement
A 75-yr-old investing for income and capital preservation
None of the above
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A zero-coupon bond pays interest
Periodically
At the maturity date
At the time of purchase
Never
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A mutual fund ticker symbol ends with the letter
C
G
X
Z
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A stock considered a large cap has market capitalization
Less than $2 Billion
Between $2 Billion and $10 Billion
Between $10 Billion and $100 Billion
Greater than $100 Billion
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Your Subtopics Go Here
Dow Jones Industrial Average
S&P 500
Russell 2000
Wilshire 5000
Index that measures smallest businesses listed
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By definition, what type of bond is purchased at face value?
Corporate bond
Treasury bond
Non-coupon bond
Coupon bond
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Your Subtopics Go Here
Dow Jones Industrial Average
S&P 500
Russell 2000
Wilshire 5000
The ‘total stock market’ index is
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What investment term is shown here?
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This retirement investment is diversified
401(k)
Roth IRA
Both
Neither
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Your Subtopics Go Here
Volume
Sector
Market capitalization
P/E ratio
The number of shares outstanding multiplied by its ‘last’ traded price equals a stock’s
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Your Subtopics Go Here
Mutual Fund
ETF
Bond
Stock
An IOU certifying that you loaned money to a level of government or a corporation is a
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Of the following which ticker symbols, which one is a mutual fund?
AAPL
SBUX
FCLFX
DJI
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Your Subtopics Go Here
Dow Jones Industrial Average
S&P 500
Russell 2000
Wilshire 5000
Index that measures 30 blue-chip stocks
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This retirement investment allows earnings to be withdrawn without penalty
401(k)
Roth IRA
Both
Neither
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Your Subtopics Go Here
Lower the risk, the higher the return rate
Higher the risk, the lower the return rate
Higher the risk, the higher the return rate
The two are not related
The basic rule of a risk-to-return relationship is that the
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Your Subtopics Go Here
The “pay yourself first” philosophy
The risk-to-return relationship
Compound interest
The Rule of 72
The time value of money can best be explained using which one of the following concepts?
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Moody’s rates
Stocks
Bonds
Mutual funds
US Savings bonds
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Which one of the following investments has the highest risk and the highest potential rate of return?
Money market mutual fund
Stocks
Government bonds
Savings bonds
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What a company pays you per share for owning stock is called
Dividend
Industry
Sector
Risk
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A bond’s interest rate is called its
Principal
Coupon rate
Face value
Par value
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Which type of stock is the most likely to pay a dividend?
Income stock
Small cap stock
Common stock
Growth stock
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A savings account is more liquid than (a)
Mutual fund
Retirement plan
House
All of the above
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A stock considered a mid cap has market capitalization
Less than $2 Billion
Between $2 Billion and $10 Billion
Between $10 Billion and $100 Billion
Greater than $100 Billion
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Rank in order of highest potential reward (1) to lowest potential reward (8)
Potential for Earnings on investment Investment Option
Preferred Stock
CDs
U.S. Savings BondsCommodities
Growth Stock
Insured Savings Account
Money Market Account
Balance Mutual Funds
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FinancialPlanningPyramid
PennyStock
Commo- dities
CollectiblesSpeculative Stock / Bonds /Mutual Funds
RealEstate
Blue-ChipCommonStock
GrowthMutual Funds
High-GradeConvertibleBonds
High-GradePreferredStock
BalancedMutual Funds
High-GradeCorporate Bondsor Mutual Funds
High-GradeMunicipal Bondsor Mutual Funds
Money MarketAccountsor Mutual Funds
Certificatesof Deposit
U.S. SavingsBonds
Insured Savings / Checking Accounts
TreasuryIssues
Highest RiskHighest Earnings
Lower RiskLower Earnings
3-J
NEFE High School Financial Planning ProgramUnit Three – Investing: Making Money Work for You
29
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Yes
No
Dollar-cost averaging is an incremental way to invest?
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Yes
No
Investors with a pessimistic attitude are nicknamed “bulls”.
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Yes
No
The NYSE lists mainly technology stocks.
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Stock Market Simulation How much money do you start with?
$10,000
$20,000
$100,000
$200,000
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SMS How much is the commission you have to pay for each transaction?
$10
10%
15%
$25
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Yes
No
SMS
Can you buy on margin?
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How many transactions are you allowed throughout the simulation?
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What is found in a stock listing?
Volumeinvestment goal
market/exchange
load
52-week high
52-week low
bid
Ask
P/E ratio
Earnings per share
fund managerticker
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The highest Moody’s rating is
Aaa
A
Baa
B
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SMSWhat is the interest rate earned on your cash balance?
1%
3%
5%
8%
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What is an advantage of having a load?
Don’t have as much money to invest
Money is in an safe investment
Fund manager keeps money in case of emergency
Fund manager offers advice
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Which investments may have a load?
Stocks
Treasury bonds
Mutual funds
Corporate bonds
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If you have a mutual fund with a load, which is the best to have?
Front-end load
Back-end load
No load
Motherload
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This retirement investment is tax deferred
401(k)
Roth IRA
Both
Neither
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