1. What counsel can you offer long-term investors who are hesitant to invest in stocks and bonds in today’s economy?

2. Make a list of the plusses and minuses of investing in either common stock or preferred stock, and give your conclusion as to which is better for you.

3. Make a list of three products and services that you buy on a weekly or monthly basis and the companies that sell them. Offer your initial views on whether each company would be a good place to invest money.

4. The text introduced a variety of ways to measure stock performance. Name two of those measures that you might use in your own decision making. Offer reasons for selecting those measures.

5. You have just heard that Microsoft’s stock price dropped $5. If you had the money, would you buy 100 shares? Give three reasons why or why not.

6. Review the classifications of common stock. Based on your personal comfort level for risk, which one type of stock would be of interest to you? Give three reasons why.

7. If you had an investment portfolio of stocks worth $20,000, identify three sources for information that you would likely use to keep abreast of current information affecting your investments.

8. Do you think anyone really calculates the potential rate of return on a particular investment? Should they? If so, offer a reason why.

9. Buying on margin and selling short both involve using credit. Would you invest this way? Give two reasons why or why not.

10. Do bonds interest you as an investment? Why or why not?