What can be traded on an exchange?

Stocks
Nope, it’s more than just stocks.
Bonds
Nope, you’re forgetting something important.
Commodities like oil and soy beans
This is also true, but there’s more.
All of the above
That’s right! All of these can be traded on an exchange

Next

What is the difference between a share and a bond?

Bond prices don’t change, the only profit you make is in the form of a regular payment
No, bond prices do change.
Stocks are a portion of ownership of a company. Bonds are debt receipts
That’s right!
There is no difference. They are different words for the same thing
This is not right, they’re very different instruments.
Shares expire, while bonds mature
Nope, shares don’t expire.

Next

Which one of these is NOT a feature of an ETF?

It tracks the performance of a collection of stocks or an index.
No, ETFs do this.
Dividends of the held stocks are paid out, or reinvested into the ETF itself.
No, ETFs do this.
An investor in an ETF has voting rights in all the companies the ETF holds.
That’s right!
ETFs are a cheaper way to invest in a wide variety of companies.
No, ETFs do this.

Next

Bonds can be issued by:

Federal, state and local governments
This is only partly right.
Companies
This is only partly right.
Individuals
No, this isn’t right.
Both №1 and №2
That’s right!

Next

How does risk relate to the interest rate on a bond?

As risk goes up, so does the interest rate
That’s right!
As risk goes up, the interest rate goes down
No, that’s not right.
Risk and interest rates are not correlated
No, that’s not right.
None of the above
No, that’s not right.

Next

4

of 5

🔥 Nice!

You are firmly on your feet and seem to be ready to enter the stock market, but you are still stumbling over some issues. Our course will help you walk lightly and confidently. But be prepared to act on your own in the future.

Choosing a broker

Lesson 2

Choosing a broker