Stocks and Cryptocurrency Ownership Quiz

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Questions and Answers

What is the difference between buying a stock and buying a cryptocurrency?

  • Stocks have voting rights while cryptocurrencies do not.
  • Stocks have physical components while cryptocurrencies do not. (correct)
  • Stocks are publicly traded while cryptocurrencies are not.
  • Stocks provide dividends while cryptocurrencies do not.

What is a capital gain?

  • The amount of money an investor makes by selling their stock.
  • The amount of money an investor makes by buying a stock.
  • The difference between what an investor spends for an asset and what they get when they sell it. (correct)
  • The difference between the value of a stock and the value of a cryptocurrency.

What is the name of a unit of cryptocurrency?

  • Token (correct)
  • Share
  • Stake
  • Investment

What is the purpose of owning shares of a company?

<p>To have a percentage stake in the company. (C)</p> Signup and view all the answers

What is the purpose of buying a stock?

<p>To be able to sell it to other investors. (D)</p> Signup and view all the answers

What does owning a stock provide?

<p>An ownership stake in the company. (A)</p> Signup and view all the answers

What is the purpose of a cryptocurrency?

<p>To exist solely on the internet. (D)</p> Signup and view all the answers

What is an advantage of owning a stock?

<p>It depends entirely on the company. (D)</p> Signup and view all the answers

What is the purpose of buying a cryptocurrency?

<p>To exist solely on the internet. (D)</p> Signup and view all the answers

What is a share of stock?

<p>A unit of stock. (B)</p> Signup and view all the answers

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Study Notes

  • Stocks are the ownership stakes of a publicly traded corporation.
  • Each share of stock you purchase gives you a percentage stake in the company.
  • An investor can profit by selling their stock to other investors.
  • A capital gain is the difference between what you spend for the asset and what you get when you sell it.
  • Besides that, the advantages of owning shares depend entirely on the company.
  • Stocks can also gain value by providing dividends to their shareholders and may include voting rights.
  • A cryptocurrency is a digital asset that exists solely on the internet, which means it doesn't have a physical component and only exists as a record in an online ledger that tracks ownership.
  • A unit of cryptocurrency is called a token, much as a unit of stock is called a share.

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