Basics Beginner: Investment Earnings

Test your knowledge

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

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
If you experience a capital loss after selling an investment, and the loss exceeds the $3,000 that you are allowed to take a tax deduction on, what happens to the excess amount?
Choose wisely. There is only one correct answer.
You can carry it over to the next year and deduct it. Losses over $3,000 can be carried over to future years.
2.
Imagine that a share of your Fund X rises from 20 dollars per share to 30 dollars per share. How much of a capital gain have you made on it?
Choose wisely. There is only one correct answer.
10 dollars, but only if you have sold it. Until they have been sold, shares that rise in price will only be profits on paper.
3.
Which of the following choices is not a way that earnings are paid to bondholders?
Choose wisely. There is only one correct answer.
Dividends. Dividends are paid to stockholders but not to bondholders.
4.
What would be your return on investment if you bought a $1,000 bond that had an 8 percent annual coupon rate and you sold the bond one year later for $950?
Choose wisely. There is only one correct answer.
3 percent.
5.
What is your one-year return on investment if you buy a stock for $50, receive a dividend of $3, and sell it for $55?
Choose wisely. There is only one correct answer.
16 percent.