Investing and Financial Markets

Question 1

Once stocks are on the market, which best explains how their prices are set?

Revolt · Accepted Answer

Prices fluctuate on the basis of demand.

Question 2

Which is true about investments and risk?

Revolt · Accepted Answer

Every investment carries some degree of risk.

Question 3

best

Revolt · Accepted Answer

They both receive capital to use for growth.

Question 4

Capital appreciation refers to

Revolt · Accepted Answer

the increased value of an asset.

Question 5

most

Revolt · Accepted Answer

hiring workers; producing goods; distributing goods; buying materials

Question 6

If a company pays dividends on a stock, does that mean that the stock has appreciated in value? Why or why not?

Revolt · Accepted Answer

No, the payment of dividends indicates that a company has earned profits.

Question 7

best

Revolt · Accepted Answer

by selling the asset for a profit

Question 8

Which term refers to the possibility of an investor losing some or all of an investment?

Revolt · Accepted Answer

risk

Question 9

Since stocks can be traded online, which purpose is best served by markets?

Revolt · Accepted Answer

Markets are where the trades actually occur.

Investing and Financial Markets Answers