The Small Investor Quiz

Above is my grandson, a small speculator. This small investor/speculator is investing his time for future profits when grown. You should be investing your money for future use for such things as retirement, a new home or furniture, a new car, or for someone’s education. Not unless you have thousands of dollars to save, invest, or speculate, you must start out small using savings tools design for small investors or speculators.

Last week you took a test to see if you know the basics of the securities market. Now let’s see what you know about speculating or investing as a very small investor.

1) You have to have _____________ to open a Sharebuilder Account managed by ING and buy stocks.
A) $10
B) $25
C) $1,000
D) any amount

2) I can double my money using the rule of ___________!
A) 72
B) 115
C) 250
D) None of these

3) I can triple my money using the rule of _____________!
A) 72
B) 115
C) 250
D) None of these

4) The Sharebuilder Account managed by ING charges;
A) $4 per transaction
B) $10 per transaction
C) $12.50 per transaction
D) None of these

5) With the Sharebuilder Account, speculators can schedule transactions on a _________ bases.
A) Weekly
B) Biweekly
C) Monthly
D) All the above

6) The Sharebuilder Account has an inactivity fee! (True or False)

7) Direct Investment Plans (DRIPS) will allow you to buy
A) Only stocks above $25 per share
B) Full and fraction of shares
C) Only full shares
D) Only preferred stock

8) With DRIPS, you can invest without a broker (True or False)

9) With Drips, a large number of the companies do not charge a transaction fee or they charge a very low fee for purchasing its stock. (true or false)

In a US Company were to file for chapter 7, generally, how would the Federal Court System award the assets of the company to the interested parties?
10) _______________
11) _______________
12) _______________
13) _______________
14) _______________
15) _______________
16) _______________
17) _______________
18) _______________
19) _______________
20) _______________

Place above from Number 10 first paid to number 20 last paid
A. Common Stockholders
B. Preferred Stockholders
C. Expenses from such claim holders as Utilities, landlords, leasers, and vendors
D. Debenture holders
E. Bonds Junior Note holders
F. Bonds Senior Note holders
G. Mortgage Bondholders
H. Employee Payroll
I. Local Taxes
J. State Taxes
K. Federal Taxes

Answers

1) D
2) A
3) B
4) A
5) D
6) False
7) B
8) True
9) True
10) K
11) J
12) I
13) H
14) G
15) F
16) E
17) D
18) C
19) B
20) A
If you got 0, 1, or 2 wrong, you know a lot about being a small speculator or investor.
If you got 3 or 4 wrong, you have a good knowledge of who will be paid if the company of your investment folds.
If you got 5 or 6 wrong, you need to study up on Federal Bankruptcy law for corporations and how small investors and speculator save commission money as well as accumulate wealth.
If you got more than 6 wrong then read future blogs and learn more about small investing and Corporate Federal Bankruptcy.

In future blogs we will explorer DRIPS and Sharebuilder Plans more fully. Now let’s look at generational behavior in families and how it affects savings and investment.

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Who is reading the blog?

From Nov. 7 thru Nov. 14th, the following people in these countries read my blog during the week;

1) United States

2) Russia

3) Germany

4) Slovenia