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Investment Fundamentals Test
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If you purchase a corporate bond...
You gave the business a loan of money.
You are responsible for the business' debts.
Shareholder resolutions are up for election.
You have equity in the business.
Correct!
Wrong!
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Which of the following entities offers protection against stock market losses?
SEC (Securities and Exchange Commission)
SIPC (Securities Investor Protection Corporation)
FINRA (Financial Industry Regulatory Authority)
None of the above
Correct!
Wrong!
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Which of the following best describes what a "junk bond" is?
A bond whose value has sharply decreased
Bond that has fallen into default
Bonds not subject to regulation
A bond that rating agencies have deemed to be "below investment-grade"
Correct!
Wrong!
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What examples of ownership investments are the following:
Savings accounts and stocks
Stocks and bonds
Collectibles and real estate
Certificates of deposit and bonds
Correct!
Wrong!
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If you purchase stock in a corporation...
You gave the business a loan of money.
You are responsible for the business' debts.
The business will pay you interest on your initial investment back.
You have equity in the business.
Correct!
Wrong!
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What kind of bond is the most secure?
Municipal bond
Corporate bond
Don't know/Not sure
US. Treasury bond
Correct!
Wrong!
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The majority of _________ ETFs "reset" everyday, which means they are made to accomplish their investment goal every day.
Leveraged
Sector
Dividend
Conventional
Correct!
Wrong!
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