Take the Investor Literacy Quiz

In general, investments that are riskier tend to provide higher returns over time than investments with less risk.

If you buy a company's stock…

If you buy a company's bond...

Over the last 20 Years in the U.S., the best average returns have been generated by:

If a company files for bankruptcy, which of the following securities is most at risk of becoming virtually worthless?

Which of the following best explains why many municipal bonds pay lower yields than other government bonds?

What has been the approximate average annual return of the S&P 500 stock index over the past 20 years (not adjusted for inflation)?

You invest $500 to buy $1,000 worth of stock on margin. The value of the stock drops by 50%. You sell it. Approximately how much of your original $500 investment are you left with in the end?

Which is the best definition of "selling short"?

Which of the following best explains the distinction between nominal returns and real returns?