Chapter Question
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Let's see if you remember some key ideas from the chapter. Answer the following with a true or false.
Stocks are shares of ownership. Owning a company’s stocks makes you a part-owner.
Capital appreciation is when the stock price becomes more expensive than when you bought it.
When you own stocks, you will always receive dividends from the company.
REITs own income-generating properties like malls, hotels, and land that is leased out.
The Philippine Stock Exchange Composite Index (PSEi) tracks the performance of the 20 biggest and most actively traded stocks.
Blue chip stocks are from the best performing and most stable companies in a stock exchange.
When considering a company’s stocks, check your goal, the company’s fundamentals, and the industry that it's in.
You can be a conservative investor and still consider buying stocks as long as they’re blue chips.
Direct investing in stocks means leaving the research and decisions to a fund manager.
With indirect investing in stocks, you’ll still need to stay updated with the prices of the shares you own.