What Do You Know About Stock Markets?
When people are fnancially literate, they have the knowledge and information necessary to make sound financial decisions. The 2020 TIAA Institute-Global Financial Literacy Excellence Center Personal Finance Index reported that more than half of U.S. adults understood borrowing, saving, earning and consuming, while less than half had a clear understanding of investing and risk.
One common type of investment is stock. The stock market is where stock is issued, purchased and sold. Stockholders have an ownership interest in a company. Test your knowledge of stocks by taking this brief quiz.
- What is a characteristic of a bull market?
- Stock prices rise
- Stock prices fall
- Investors are pessimistic
- None of the above
- A stockholder is ______ who/that owns at least one share of a corporation’s stock.
- A person
- A company
- An institution
- All of the above
- A person may be able to invest in a company by purchasing:
- Common stock
- Preferred stock
- Corporate bonds
- All of the above
- What term is used to describe a stock market decline of 10 percent?
- A dip
- A correction
- A haircut
- A bath
- List the following from highest risk to lowest risk:
- Emerging market stock
- 10-year Treasury bond
- 30-year investment-grade bond
- Savings account
- S. blue chip stock
- Which of the following is a reason that a company might issue stock?
- Raise capital
- Transfer ownership
- Reduce debt
- All of the above
If you have any questions about the answers, let us know.
Answers: (1) A; (2) D; (3) D; (4) B; (5) A, E, C, B, D; (6) D
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Weekly Focus – Think About It
“Keep your face always toward the sunshine - and shadows will fall behind you.”
— Walt Whitman, poet\
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Andrew Zittell is a Registered Representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Strategic Wealth Advisors Group, LLC a Registered Investment Advisor. Yerba Buena Financial Partners and Strategic Wealth Advisors Group, LLC are separate entities from LPL Financial.
https://www.goodreads.com/quotes/428038-raise-your-words-not-voice-it-is-rain-that-grows
https://www.federalreserve.gov/monetarypolicy/files/monetary20210728a1.pdf
https://www.federalreserve.gov/newsevents/speech/powell20210827a.htm
https://www.investopedia.com/terms/f/federalfundsrate.asp
https://lipperalpha.refinitiv.com/wp-content/uploads/2021/08/TRPR_82221_608.pdf
https://www.barrons.com/market-data?mod=BOL_TOPNAV (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2021/08-30-21_Barrons_Overview_8.pdf)
https://www.investopedia.com/terms/s/stockmarket.asp
https://www.goodreads.com/author/quotes/1438.Walt_Whitman
https://www.investopedia.com/terms/b/bullmarket.asp
https://www.investopedia.com/terms/s/shareholder.asp
https://www.investopedia.com/terms/c/correction.asp
https://www.upcounsel.com/why-do-corporations-issue-stock
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