Stock Advisor for Beginners

Question 1

What does CFP stand for?

Accepted Answer

Certified Financial Planner

Answer

Consolidated Financial Planning

Answer

Continuous Financial Progress

Answer

Change for Progress

Question 2

What are two things you should look at when analyzing a company's fundamentals?

Accepted Answer

EPS and P/E ratio

Answer

EPS and income statement

Answer

P/E ratio and balance sheet

Answer

Income statement and balance sheet

Question 3

What is the best piece of advice for beginner investors?

Accepted Answer

Individual stocks should be avoided.

Answer

Study the company and anticipate what's coming next

Answer

Invest in your favorite product or company

Answer

Put faith in past performance

Question 4

What is one reason people may have an unrealistic expectation about the stock market?

Accepted Answer

They confuse luck with skill.

Answer

They think they can predict the future.

Answer

They do not understand how compounding works.

Answer

They do not take into account risk.

Question 5

What do you need to know to make money consistently in individual stocks?

Accepted Answer

Something that the market hasn't already accounted into the stock price

Answer

The company's reported earnings

Answer

The company's products

Answer

The company's stock price

Question 6

You will have losses from time to time in the stock market.

Accepted Answer

True

Answer

False

Answer

Only if you're a beginner

Answer

Only if you're inexperienced

Question 7

Why shouldn't a single stock have too much of an impact on your overall return?

Accepted Answer

You broadened your portfolio

Answer

You don't have any risk

Answer

You only own index funds

Answer

You don't own any other stocks