Title: QUIZ: Get Into Stocks -- No Frills Money Skills Video Series
Course: Andria Testing FRE2 > Section: Get Into Stocks -- No Frills Money Skills Video Series

Q: Capital gain means _____.
- the price of a financial asset increased between the time it was purchased and the time it was sold
- there has been a gain in economic capital, such as the number of machines, tools, and buildings
- the number of financial assets has increased over time
- the average price of financial assets has increased over time
A: the price of a financial asset increased between the time it was purchased and the time it was sold

Q: What is a stock?
- A stock is a share of ownership in a publicly traded company.
- A stock is a certificate of indebtedness issued by a corporation.
- A stock is a type of currency issued by the federal government.
- A stock is a loan you must pay back to a creditor.
A: A stock is a share of ownership in a publicly traded company.

Q: How can a company raise money to grow?
- It can issue an IPO.
- It can trade its stock on the New York Stock Exchange.
- It can purchase its stock from its stockholders.
- It can pay off its debts.
A: It can issue an IPO.

Q: Each of the following is a benefit of issuing stock to grow a business except __________.
- access to more funds than she could get from her own savings
- access to money that she does not have to repay, unlike a loan
- the possibility of rapid growth
- giving up shares of ownership
A: giving up shares of ownership

Q: Which of the following financial investments would be considered most risky?
- Cash
- Certificates of Deposit
- Corporate bonds
- Stocks
A: Stocks

Q: Which of the following financial investments would be considered most risky?
- Savings accounts
- Mutual funds
- Stocks
- Commodities
A: Commodities

Q: What is meant by the statement, "the higher the risk, the higher the potential reward?
- If you buy a very risky financial investment, you will receive a very high reward.
- Only very risky financial investments pay off.
- If you buy a financial investment that has low risk, you can't possibility gain a high reward.
- The potential for reward is greater with a riskier financial investment because prices are volatile, meaning they can decrease greatly or they can increase greatly.
A: The potential for reward is greater with a riskier financial investment because prices are volatile, meaning they can decrease greatly or they can increase greatly.

Q: Diversification offers all of the following benefits, except __________.
- reducing your risk
- increasing your opportunity for return
- spreading your risk over many financial investments
- guaranteeing a positive return on your financial investments.
A: guaranteeing a positive return on your financial investments.