Stock Quests

Before I continue with bonds, let's check if you gained the knowledge you need how to comfortably buy stocks, know where they are stored, what types there are and some more quests!

Make sure you correctly answer all quests before continuing with bonds.

Quest: Stocks

What are stocks?

A (very small) piece of ownership in a company Outstanding loan from a company A financial instrument that can give you voting rights in shareholder meetings of the company

Reward: +10 XP 0 0 0

Quest: Selling stocks

Why would a company issue shares to the public?

Because the company wants to raise capital (money) to grow their business To give venture capitalists (early investors) a chance to step out with a profit To avoid debt

Reward: +10 XP 0 0 0

Quest: Stock splits

What describes stock splits best?

Dividing the current amount of stocks by half Dividing stocks between multiple exchanges A way to increase or decrease the amount of stocks available for the public

Reward: +10 XP 0 0 0

Quest: Stocks and equity

Which of the following represents the same thing?

Stocks, bonds, equity and shares Stocks, equity, shares and volatility Stock, shares and equity Liquidity, stocks, equity and shares

Reward: +10 XP 0 0 0

Quest: Type of stocks

Which two types of stocks are there?

Common and callable Callable and preferred Common and preferred Growth and value

Reward: +10 XP 0 0 0

Quest: Call option

What is a call option or callable stock?

Gives the issuer the right to buy back shares from the investor at a certain price and date. Gives the issuer the right to sell more shares to investors Gives the investor the right to buy more shares when new shares hit the market Gives the right to attend shareholder meetings

Reward: +10 XP 0 0 0

Quest: Four types of stocks

Stocks can be divided between the following types (among others):

Growth, value, ,defensive, aggressive Growth, defensive, undervalued, aggressive Growth, aggressive, overvalued, dividend Growth. Value, dividend, defensive

Reward: +10 XP 0 0 0

Quest: Blue chip stocks

What are blue chip stocks?

Stocks from technology companies Stocks from highly valued companies Stocks from big well established companies Stocks from fast growing companies

Reward: +10 XP 0 0 0

Quest: Broker vs exchange

What’s the difference between a broker and exchange?

You generally need a broker when buying stocks listed on an exchange You need an exchange when buying stocks through a broker You can directly buy stocks from a broker without the need of an exchange You can directly buy stocks from an exchange without a broker A broker and exchange are the same thing

Reward: +10 XP 0 0 0

Quest: Stock storage

Where is the ownership of the shares stored?

Stocks are stored at the broker Stocks are stored at the exchange Stocks are stored at the broker and are registered by the company you buy shares from Stocks are stored at a bank Stocks are stored at the broker and at the exchange you buy them from

Reward: +10 XP 0 0 0

Quest: Bankrupty

What two kinds of bankruptcy are there (for companies)?

Liquidated and total bankrupt Chapter 11 and 7 bankruptcy Liquidated and insolvent Bankrupt and insolvent

Reward: +10 XP 0 0 0

Quest: Volatility

Campaign: 0 / 42

What is volatility?

Lots of activity in the market How fast something can be bought or sold Measurement of fluctuation in price over an x period of time

Reward: +10 XP 0 0 0

Chapters: The Ultimate Investing Guide

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Stock Quests

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Chapters: The Ultimate Investing Guide

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