Investing & Financial Markets

Capital appreciation refers to- the increased value of an asset. the ability to make a profit from owning stock. the distribution of earnings to shareholders. the profitable sale of shares.

Which factors can affect a stock's price? Check all that apply. market performance the company's financial health the quantity products produced location of the company the economy

Which is true about investments and risk? Low-risk investments have a high return over the long run. High-risk investments usually fail. Safe investments are always somewhat profitable. Every investment carries some degree of risk.

What is one way in which bonds do not generate income for investors? Bonds appreciate in value. Bonds pay interest. Bonds pay a specified amount at maturity. Bonds pay dividends.

Which statement best describes how an investor makes money off debt? An investor makes money by issuing bonds. An investor makes money by earning interest. An investor makes money by raising capital. An investor makes money by being repaid for the principal.

Which are common types of bonds that are currently issued? Check all that apply. corporate bonds equity bonds municipal bonds Treasury bills Treasury notes war bonds

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not? Yes, the payment of dividends indicates that a stock's value has increased. No, the payment of dividends indicates that a company has earned profits. Yes, the payment of dividends indicates that a company's assets have grown. No, the payment of dividends indicates that a company can repay investors.

Which best describes how an investor makes money from an equity investment? by earning interest by selling the asset for a profit by raising capital by growing the asset

Which are the most likely uses of capital invested in a business? Check all that apply. paying taxes hiring workers repaying investors producing goods distributing goods buying materials

Which best describes the role that government and business play in investments? They both use taxes to support a country's growth. They both invest money to earn a profit. They both receive capital to use for growth. They both act as angel investors for start-ups.

Which types of investments are securities? both debt and equity debt only equity only neither debt nor equity

Which best describes what a market index does? An index measures market performance. An index measures economic trends. An index measures growth. An index measures the performance of a single stock.

Which best describes an investor's primary goal? to grow a business to earn a profit to bolster the economy to provide capital to a business

Since stocks can be traded online, which purpose is best served by markets? Markets regulate transactions. Markets are where the trades actually occur. Markets sell the assets to be traded. Markets ensure that the transactions are secure.

Which best describes what generally occurs in financial markets? Debt and loans are traded.Assets are traded. Commodities are traded. Shares are traded. Assets are traded.