Home > Stocks > Beginner
Stocks Beginner: Introduction to Stocks

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Buying highly volatile stocks may be _______.
Choose wisely. There is only one correct answer.
Either A or B. Buying highly volatile stocks may be the quickest way to make or to lose money on the market. Since volatile stocks have greater and/or more frequent fluctuations in value than the market as a whole, they can be the quickest way to either make OR lose money.
2.
The best way to make a lot of money quickly is to buy and sell blue chip stocks.
Choose wisely. There is only one correct answer.
False. Blue chip stocks have low volatility, so any growth in value is likely to be slow.
3.
A _______ broker helps customers make decisions on investments.
Choose wisely. There is only one correct answer.
Full-service. The full-service broker includes investment assistance in his or her range of services.
4.
Common stock and preferred stock both convey the same kind of equity rights.
Choose wisely. There is only one correct answer.
False. Owners of preferred stock have prior claim to the companys assets over owners of common stock.
5.
Which of the following statements is true?
Choose wisely. There is only one correct answer.
Bonds pay fixed income; common stock doesnt. Bonds pay a fixed interest rate; stock values and dividends depend on the performance of the company.