Test Your "FIQ"

1. Who is the SEC?

One of the NCAA confederates.
A brief piece of time.
The Securities Exchange Commission.
A little known country in the South Pacific.

2. What is the underlying concept of the "time value of money"?

A penny saved is a penny earned.
Don't count your chickens before they hatch.
A dollar tomorrow is worth more than a dollar today.
A dollar today is worth more than a dollar tomorrow.

3. What is the P/E ratio?

The ratio of a company's profits and equity.
The ratio of a company's price and earnings.
The amount of physical exercise a child gets.
A company's employee profit sharing plan.

4. What is a margin account?

A special type of brokerage account, which allows investors to buy securities with borrowed money.
A special type of brokerage account for marginal, small investors.
An account that produces marginal returns.
A foreign account that monitor border investments.

5. What/who is Dow Jones?

The top rated quarterback in the PAC 10 conference.
CNBC's most popular financial news anchor.
The weighted-average of 30 widely traded junk bonds.
The weighted-average of 30 widely traded blue chip stocks.

6. What are two times when taxes become due for stock transactions?

Daily...the IRS is greedy!
At the time a stock is purchased and when dividends are issued.
When a stock increases in value by more than 75-percent or a stock is sold with capital gains.
When dividends are issued or a stock is sold with capital gains.

7. What does "over-the-counter" mean?

Stocks purchased for companies like Advil, Tylenol, and Immodium AD.
Stocks priced higher than the average Dow Jones stock.
Stocks available for purchase at your corner drug store.
Stocks traded on the NASDAQ.

8. What is the traditional opening time for the NYSE?

9:30 AM
9:00 AM
8:30 AM
It never closes.

9. What is a limit order?

An order with a quantity of shares specified.
An order that limits the number of transactions per day.
An order type available only to limited people.
An order that specifies the price sought for a stock.

10. If I answer all of the questions correctly, I ...

am ready to conquer the financial world.
am smarter than Einstein.
will certainly be a millionaire by next year.
have shown that I have a little bit of financial knowledge, but still need to learn more.

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