How Much Have You Learned About the Market?

Match the words or phrases that most closely match the statements made below.

Match these phrases
a) Growth Stocks
b) Corporate Bonds
c) Share Builders Account
d) Municipal Bonds
e) Short Sale or buy puts
f) Payout Ratio
g) Margin Account
h) Treasury Bonds
i) P/E Ratio
j) Income Stocks
k) Warrants
l) Cash Account

With these statements
1. The type of securities that you want to buy to receive an income while you wait for the securities to appreciate.
2. The type of securities that you want to buy when you believe economic activity will dramatically increase in the next six months to a year.
3. This is what you do when you believe that economic activity will fall in the near future, that will cause stock prices to do the same.
4. Price divided by Earnings
5. Dividends divided by Earnings
6. Evidence of an IOU from a company
7. Evidence of an IOU from a county within a state
8. Evidence of an IOU from the United States
9. An account where you can buy and sell full and fractions of securities
10. An account where you can borrow money

Answers
1 – j 4 - i 7 – d 10 - g
2 – a 5 – f 8 - h
3 – e 6 – b 9 – c

How did you do?
10 -9 right is an expert. 8 - 7 is knowledgeable. 6 – 5 need improvement. 4 and below does not have a clue of what we are doing here.