Free Stock Marketing Practices Q&A

What does it mean to "buy the basket"?

Buying a basket of stocks means buying all the stocks in the world.

Buying a basket of stocks means buying all the stocks in a particular company.

Buying a basket of stocks means buying all the stocks in a particular country.

Purchasing a basket of stocks entails purchasing all of the companies in a specific industry.

Correct! Wrong!

How does the stock market allow investors to wager on the future of a company?

By gambling on the company's stock price.

By investing in the company's stock.

By judging the company on its business results and future prospects.

Setting the company's value based on the price at which investors are willing to buy and sell.

Correct! Wrong!

Which of the following is NOT a buying strategy that reduces your exposure to price volatility?

Investing a lump sum all at once

Dollar-cost averaging

Investing only when the stock price is low

Investing a predetermined sum of money at recurring times

Correct! Wrong!

What is the best advice for avoiding the morale-crushing experience of bumpy results right out of the gate when investing?

Divide the amount you wish to invest by three, and then buy shares at three different locations.

Invest all of the amount you want to invest at once.

Invest in thirds only when the market is down.

Do not invest in companies that are experiencing events.

Correct! Wrong!

As long as you don’t sell your stock, you _____.

Can hold your stock forever

There will be no taxation on the gains.

Will owe tax on the gains

Will only have to pay taxes on dividends

Correct! Wrong!

The stock market is a way for investors to ______

Gamble on stocks

Trade stocks for cash, or vice versa.

Correct! Wrong!

What does compounding refer to in relation to investing?

The fees charged by stockbrokers when an investor buys or sells shares

When an investor buys and sells the same security within a short period of time

The reinvestment of earnings from a company back into the company

The potential for an investment's returns to grow as they are reinvested

Correct! Wrong!

FREE Stock Marketing Practices Questions and Answers

What does it mean to "buy the basket"?

How does the stock market allow investors to wager on the future of a company?

Which of the following is NOT a buying strategy that reduces your exposure to price volatility?

What is the best advice for avoiding the morale-crushing experience of bumpy results right out of the gate when investing?

As long as you don’t sell your stock, you _____.

The stock market is a way for investors to ______

What does compounding refer to in relation to investing?

FREE Stock Advisor Trainer Questions and Answers

FREE Stock Advisor for Beginners Questions and Answers

What does it mean to "buy the basket"?

How does the stock market allow investors to wager on the future of a company?

Which of the following is NOT a buying strategy that reduces your exposure to price volatility?

What is the best advice for avoiding the morale-crushing experience of bumpy results right out of the gate when investing?

As long as you don’t sell your stock, you _____.

The stock market is a way for investors to ______

What does compounding refer to in relation to investing?

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