investing and financial markets example #16945

22 May 2024
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10 test answers

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question
Once stocks are on the market, which best explains how their prices are set?
answer
Prices fluctuate on the basis of demand.
question
If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?
answer
No, the payment of dividends indicates that a company has earned profits.
question
Since stocks can be traded online, which purpose is best served by markets?
answer
Markets are where the trades actually occur.
question
Which are common types of bonds that are currently issued? Check all that apply.
answer
*corporate bonds *municipal bonds *Treasury bills *Treasury notes
question
Which can be traded in a commodities market?
answer
oil
question
Which best describes an investor's primary goal?
answer
to earn profit
question
Which best describes how an investor makes money from an equity investment?
answer
by selling the asset for a profit
question
Which best describes how an investor makes money off debt?
answer
by earning interest
question
Which is true about investments and risk?
answer
Every investment carries some degree of risk.
question
Which factors can affect a stock's price? Check all that apply.
answer
*market performance *the company's financial health *the economy