Investing and Financial Markets

Question 1

Which types of investments are securities?

Revolt · Accepted Answer

both debt and equity

Question 2

How do bonds generate income for investors?

Revolt · Accepted Answer

Bonds pay a specified amount to the investor at maturity.

Question 3

Are the buying and selling of stocks centralized activities? Why or why not?

Revolt · Accepted Answer

No, there are many stock markets around the world, and they are independent of one another.

Question 4

Which factors can affect a stock’s price? Check all that apply.

Question 5

Which are common types of bonds that are currently issued? Check all that apply.

Question 6

What can be traded in a commodities market?

Revolt · Accepted Answer

oil

Question 7

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 8

Which describes an investor’s primary goal of buying a loan?

Revolt · Accepted Answer

to earn a profit off the interest

Question 9

Which best describes what generally occurs in financial markets?

Revolt · Accepted Answer

Assets are traded.

Question 10

Which is true about investments and risk?

Revolt · Accepted Answer

Every investment carries some degree of risk.

Investing and Financial Markets Answers