Investor Knowledge Quiz

  1. If you buy a company's stock…




  2. If you buy a company's bond...




  3. Which type of bond is the safest?



  4. In general, if interest rates go down, then bond prices…



  5. Which of the following is the best definition for a "junk bond?"




  6. A "no-load" mutual fund is one that…




  7. In general, investments that are riskier tend to provide higher returns over time than investments with less risk.


  8. Which of the following organizations insures you against your losses in the stock market?





  9. If a company files for bankruptcy, which of the following securities is most at risk of becoming virtually worthless?



  10. Which of the following best explains why many municipal bonds pay lower yields than other government bonds?



  11. You invest $500 to buy $1,000 worth of stock on margin.  The value of the stock drops by 50%.  You sell it.  Approximately how much of your original $500 investment are you left with in the end?



  12. Which is the best definition of "selling short"?




  13. Hedge funds are always subject to the same rules and regulations as mutual funds.


  14. The principal difference between mutual fund share classes (Class A, Class B, Class C, etc.) is:



  15. A Section 529 Plan is a tax-advantaged way to save for: