{{asɛmtiNe Ɔkyerɛwfo}} | Nhomakorabea | Nneɛma a ɛma wotumi yɛ ade

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2

What is a stock?

An annual report that includes details about a company’s leadership and earnings

A low-risk savings option that can help you build an emergency fund

An investment option that allows you to own a small piece of a company

A measurement of a company’s profits

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2

When evaluating a company's financial health, which of the following metrics is most commonly used to determine its profitability?

Dividend Yield

Market Capitalization

Earnings per Share (EPS)

Price-to-Earnings (P/E) Ratio

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2

Which of the following is TRUE about a stock split?

It affects the company’s market capitalization.

It makes shares more affordable for investors.

It increases the total value of the company.

It decreases the number of shares outstanding.

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2

Which of the following most accurately describes what a bond is?

A share of ownership in a company.

A financial derivative used for trading purposes.

A type of savings account offered by banks.

A loan made by an investor to a borrower, typically corporate or governmental.

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2

Marcus buys a bond with a fixed coupon rate of 3%. Six months later, similar bonds issued have a coupon rate of 4%. Which of the following is TRUE if he chooses to sell the bond before maturity?

Marcus will likely sell the bond at par value.

The selling price will not be affected by interest rates.

Marcus will likely sell the bond at a discount.

Marcus will likely sell the bond at a premium.

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2

One difference between bonds and bond funds is:

Bonds are debt securities, while bond funds are equity investments.

Bonds provide fixed income, while bond funds have fluctuating income.

Bonds can only be purchased at par value, while bond funds can be traded at any price.

Bonds are managed by financial advisors, while bond funds are not.

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2

All of the following are strategies to reduce risk EXCEPT:

Diversification of investments

Regularly reviewing your portfolio

Investing in high-yield bonds

Maintaining an emergency fund

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2

Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because…

It prevents you from making emotional decisions during market downturns.

Short-term market fluctuations tend to average out over a longer period.

It allows you to avoid taxes on your gains.

It guarantees a higher return on investment.

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2

Which of the following is an example of diversification?

Holding a mix of stocks, bonds, and real estate in your portfolio

Investing all your money in one company's stock

Concentrating your investments in a single mutual fund

Purchasing only technology sector stocks

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2

Which of the following best describes investment risk?

The assurance that an investment will increase in value over time.

The likelihood of losing all your initial investment.

The chance that an investment’s actual return will differ from the expected return.

The possibility of earning a guaranteed return on an investment.

Wk 7 Exit Ticket 3.3, 3.4, & 3.5

Wk 7 Exit Ticket 3.3, 3.4, & 3.5

What is a stock?

When evaluating a company's financial health, which of the following metrics is most commonly used to determine its profitability?

Which of the following is TRUE about a stock split?

Which of the following most accurately describes what a bond is?

Marcus buys a bond with a fixed coupon rate of 3%. Six months later, similar bonds issued have a coupon rate of 4%. Which of the following is TRUE if he chooses to sell the bond before maturity?

One difference between bonds and bond funds is:

All of the following are strategies to reduce risk EXCEPT:

Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because…

Which of the following is an example of diversification?

Which of the following best describes investment risk?

What is a stock?

When evaluating a company's financial health, which of the following metrics is most commonly used to determine its profitability?

Which of the following is TRUE about a stock split?

Which of the following most accurately describes what a bond is?

Marcus buys a bond with a fixed coupon rate of 3%. Six months later, similar bonds issued have a coupon rate of 4%. Which of the following is TRUE if he chooses to sell the bond before maturity?

One difference between bonds and bond funds is:

All of the following are strategies to reduce risk EXCEPT:

Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because…

Which of the following is an example of diversification?

Which of the following best describes investment risk?