Financial Intelligence Quiz #2: Investment Term Used in Stocks

Awhile ago, I started financial intelligence quiz in this blog. The first financial quiz wasn’t related to stocks but related to the “future worth of a $500 that earns 5% per year if it’s invested in mutual fund bond type within 20 years without compounding the interest earned”. The answer to this question is ($10,000) one thousand dollars. Is it correct? I guess!

Want to add your answer to that question? Simply, take the financial intelligence quiz #1 here.
Adding financial quizzes in this blog can help my readers to expand their financial knowledge especially the “terms” used when investing and other things to do in a specific important situation. Some questions let you think what to do with your finances or how to respond in a given situation.

Financial Intelligence Quiz

Here’s the financial quiz number two at Return On Investment blog, to make it short and simple, here’s the clue! In investing in stocks, there are two ways to make money. First is capital gain and second is through dividends.

While I am reading the book of Brian O’Connell entitled “Build Your Own Mutual Fund: How to Use a Personal Portfolio to Take Control of Your Financial Life”, I decided to make the things I’ve learned in this book as a quiz for today.

Financial Intelligence Quiz #2

According to Brian O’Connell, a _______ “is a payment made by a company to its shareholders. A portion of the profits of the company. The amount to be paid is determined by the board of directors, and it may be paid even during a time when a company is not performing profitability”. This financial term is commonly used in stock investing. What is it?

This financial quiz is very easy. No need to give you some choices. That’s all for today, start answering this question using the comment box. Thank you!