Stocks Beginner:
Introduction to Stocks
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
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.
True
False
False. Blue chip stocks have low volatility, so any growth in value is likely to be slow.
2.
Volatile stocks always show a better return than the rest of the market.
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True
False
False. While volatile stocks show greater price fluctuations than the rest of the market, those fluctuations can be up or down.
3.
A _______ broker helps customers make decisions on investments.
Choose wisely. There is only one correct answer.
Discount
Deep-discount
Full-service
Full-service. The full-service broker includes investment assistance in his or her range of services.
4.
Jim just bought 200 shares of Microsoft. He is now part owner of ______.
Choose wisely. There is only one correct answer.
All the software in the Microsoft warehouse
Bill Gates office
Microsofts manufacturing facilities
All of the above
All of the above. These are all examples of the companys assets. Stock ownership conveys equity in a companys assets.
5.
Common stock is less predictable than preferred stock.
Choose wisely. There is only one correct answer.
True
False
True. Since preferred stock pays a fixed premium, it is more predictable than common stock.
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DONE