If this Investing101 chapter was part of an Assignment, get all these questions right to get credit! What defines an investment bubble? O Prices go up too much, too fast and back down too quickly O Prices go up quickly and stay there Prices drop steadily and then rebound sharply People talk a lot about an investment How can you recognize an investment craze? Study stock charts O Be aware of news headlines O Listen to conversations at parties O All of the above Day trading involves buying and selling investments: O That only trade once per day That new investors can be successful at doing O Within the same day O Between the hours of 9:30 am and 4 pm What is swing trading? O Buying when the price gets to the bottom of the channel O Buying when the price gets to the top of the tunnel and selling at the bottom Selling when the price gets to the bottom of the channel Using swing music to find price patterns in stocks What are penny stocks? O Stocks that are popular with seasoned investors O Stocks that sell for less than $5.00 O Stocks that produce a few pennies of profit on every trade Stocks with prices based on the number of shares outstanding What is a buy and hold philosophy? Hold a stock until the price starts to fall O Hold a stock until it reaches a 25% gain Hang on to stocks to realize long-term gains and profit A strategy often used by swing traders, sometimes by day traders What is the result of the "growth at any price philosophy? Big gains or big losses Impressive but often unsustainable gains in stock prices O An eventual shift to a more conservative strategy O All of the above What is insider trading? O A highly illegal and unethical method of trading stocks Something reserved for rich or famous people O A transaction that involves private knowledge about a company and its stocks and securities A transaction that always violates fiduciary responsibility COS O A highly illegal and unethical method of trading stocks Something reserved for rich or famous people O A transaction that involves private knowledge about a company and its stocks and securities A transaction that always violates fiduciary responsibility What is investor sentiment? The stock market's attitude towards specific stocks, industries, or market conditions Technical information about specific stocks, industries, or market conditions Something that has no effect on market prices Something that is intangible, it's the emotional measure of a stock and can't be measured What does arbitrage involve? O Price similarities in two different markets O Price differences across two or more markets for the same investment Trading one stock for another very quickly A strategy that is risky and may not result in any profit We have received your answers, click "Submit" below to get your score
