Lessons: Chapter 3 - Investment Basics

Important Links

Stock basics tutorial from Investopedia: Tutorial

Stock basics video on Youtube from Investools: Investools Video

Video on how the stock market works: Video

Assignments

Choose The Best Answer:

3.1: If you own this type of stock, you can help determine the members of the board of directors of the company in which  you have invested.

1. Preferred Stock

2. Long-Term Debt

3. Common Stock 

4. Assets

3.2: Assume you started your own company by borrowing money from your parents and also investing some of your own money. Which item below represents the total amount of money you put into your company to get it started?

1. Capital

2. Equity

3. Long-Term Debt

4. Common Stock

5. Assets

3.3: An underwriter is:

1. an individual or company that helps a company with an IPO

2. an individual who owns common stock

3. an individual or company that lends or borrows money

4. an individual who owns preferred stock

5. assets

3.4: If a company goes bankrupt and all its assets have to be sold off, who gets paid first with the proceeds of the sale? 

1. Those who own the common stock of the company

2. Those who own the preferred stock of the company

3. Those who have lent the company money 

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