Friday, March 23, 2012

The Test

1.What is investing?
         A. A weird way to say money.
         B. Using money to make money
         C. A pyramid scheme
  2. What are Stocks?
         A. A unit of inventory
         B. A company
         C. An ownership share in a corporation
  3.Example: If a company has $1,000,000 in
  Income, and $900,000 in expenses, is this considered:
         A. A bankrupt company
         B. Positive cash flow
         C. A crime.
  4. What are Futures?
         A. The price of commodities.
         B. The past price of a commodity.
         C. A contract for the secure future price for that commodity.
         D.The projected price of any commodity.
  5.What is an option?
         A. A financial derivative that allows the buyer to the right to buy and sell a security or other financial asset at an agreed-upon price, for a certain period of time.
         B. A venture capitalist tool.
         C. The papers needed for a secure transaction of a future.
  6. What does it mean when the Stochastic is at 20?
         A. The stock might go up.
         B. The stock might go sideways
         C. The stock might go down.
  7. What is a butterfly?
         A. A stocks value.
         B.A mutual fund term to describe their clients
         C. An option strategy.
   8. Describe what the “Multiple” is.

   9. When gold prices rise dramatically, what state is the economy usually in?
        A. Correction
        B. Bull market
   10. What are the signs of a bull market in the

What is your strongest area in finance?

What areas do you think you need to work on?