Business Exam Question - Answers
Autor: Joshua • December 3, 2017 • 820 Words (4 Pages) • 1,873 Views
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6. What are equity investments?
Answer:
They are investments in the ownership of something such as a company, with the hope that the investment will increase in value in the future.
Lesson 3
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1. What are stocks?
Answer:
Equity investment where you can buy partial ownership of a company in a tiny fractional amount called a share
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2. What are bonds?
Answer:
It is a type of debt investment where you lend a company or the government money and they give you a document called a bond. The bond is a document that promises they will pay you back a specific amount on a certain date.
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3. What is fraud?
Answer:
It is illegal dishonest behavior by an individual or a company.
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4. What is an annuity?
Answer:
It is an agreement you make with an insurance company in which you pay them a certain amount of money and they pay you back a larger amount in regular payments in the future.
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5. What is microfinance?
Answer:
It is providing loans or other financial services to low income individuals or groups who can’t access banks or wouldn’t qualify for loans. The borrowers use these loans to fund small business ideas, which ideally helps them escape poverty.
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6. What is venture capital?
Answer:
It is money used for a business in its early stages, however it is in the stages the business is more stable than the beginning start up stage.
Lesson 4
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1. What is a 401(k) account?
Answer:
It is a common type of retirement account. They are offered by businesses or companies to their employees.
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2. What is a mutual fund?
Answer:
It is a company that takes money from many investors, pools them together, and then invest it in stocks, bonds, or other securities or a combination of these.
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3. What is a broker?
Answer:
It is a finance professional that buys and sells stocks or other securities on the behalf of the investor.
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4. Name a stock market indicator in the U.S.
Answer:
Dow Jones Industrial Average; This stock market indicator used in the U.S. averages the 30 largest stock market companies in the NYSE and NASDAQ stock. It is an indicator of how the stock market as a whole is doing.
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5. Name at least two pieces of information that might be found in stock listings.
Answer:
The highest and lowest price the stock has sold for over the past 52 weeks and the name of the company
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