2.2

A "Private" company.

Is not listed on a stock exchange

Does not have any stock

Are always small and trying to grow

All of the above

After shares are sold in an IPO, how much money does the original company get when stocks are traded on a secondary market?

Over 75% of the stock's value

About 50% of the stock's value

Around 5% of the stock's value

Nothing

Why do companies go public?

To raise cash by selling stock

To raise their profile and show they are a "big deal"

To make their founders rich and easier for them to "cash out"

So they are less dependent on big banks

The business cycle refers to

How a single business is profitable some times of the year, and struggles other times of the year

An economic phenomenon when the markets as a whole expand and contract

A cycle of bull and bear markets caused by bubbles

Are not something you can control, so not worth worrying about

Which is not one of the four stages of a stock's cycle?

Accumulation

Markup

Selloff

Markdown

A "Trough" in the business cycle refers to

The low point before it starts increasing

The high point before it starts falling

The period of growth

The period of contraction

A "Bull Market" is

A period of uninterrupted increases in stock prices

A period of long growth in a single stock's price

A period of general investor optimism that prices will increase

If an analyst is "Bearish", they are signaling

They think a recession will start soon

We are near a market trough

A single stock is probably overvalued

We are heading for a crash

An index ETF will be the safest choice during

A bull market

A bear market

How does a brokerage act as a custodian?

Helping you make trades by sending them to the stock market

Cleaning up after your mess after you make a big loss

By loaning money to investors to get leverage

By holding your stocks and keeping records

The first true "Discount Brokerage" was

Charles Schwab

Robinhood

Merrill Lynch

Warren Buffett

Balancing risk and reward, which security type has been the strongest over the last 100 years?

Stocks

Bonds

Precious Metals

Real Estate

True or False - Stock investing always has the highest returns of any investment type

TRUE

FALSE

True or False - Professionally-managed mutual funds usually out-perform the stock market as a whole

TRUE

FALSE

True or False - The S&P 500 has had a positive return every year for the last 100 years

TRUE

FALSE

What is one advantage of stocks over cryptocurrencies?

More transparency in research, because stock exchanges require disclosure of a lot of information

Easier to predict price movements

The prices tend to be more stable and less likely to spike or crash

All of the above

Which of the following is a service offered by most discount brokers?

Research tools

Mutual fund advice

A licensed broker you can call

Percentage commissions on stock trades

Trading "On Margin" refers to

Trading stocks over-the-counter

Borrowing money from your broker to invest

Trading a very small amount

Trading in a brokerage account