Question
The majority of stock trading is done in the secondary market. (True/False) Typically, when the stock market takes a dive, an investor should stay in
The majority of stock trading is done in the secondary market. (True/False)
Typically, when the stock market takes a dive, an investor should stay in the market especially if they are in the market long-term. (True/False)
The market is cyclical and stock prices will go up and down. (True/False)
An investors risk tolerance level should be utilized when selecting the right investments for that individual. (True/False)
It is wise to think long-term, instead of panic selling when the stock prices drop. (True/False)
The buy-and-hold strategy is recommended even during market declines. (True/False)
Historically bonds earn a lower average rate of return compared to stocks due to lower risk. (True/False)
Bonds earn a set interest rate and it is paid according to a predetermined schedule (True/False)
A Bear Market (when the overall stock market declines) reminds investors of the virtues of bonds safety and stability. (True/False)
Bonds can especially be appropriate for those who cannot tolerate the short-term volatility of the stock market (i.e., someone who needs the money in a few years). (True/False)
Bonds can be purchased through a broker (for a fee) or directly from the government. (True/False)
The price of bond will be constant until its maturity date. (True/False)
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