10 Questions
What is the difference between the cost of an asset and what you get when you sell it?
A capital gain
What is the name of a unit of cryptocurrency?
Token
What is the most common way of profiting from stocks?
Selling the stock to other investors
What is the purpose of owning stocks?
To profit from the company
What is the difference between a stock and a cryptocurrency?
A stock is a physical asset, while a cryptocurrency is a record in an online ledger
What is the ownership stake of a publicly traded corporation?
Shares
What is the most common way of profiting from cryptocurrency?
Selling the tokens to other investors
What is the purpose of owning cryptocurrency?
To profit from the company
What is an example of a capital gain?
The difference between what you spend for an asset and what you get when you sell it
What are the advantages of owning stocks?
Providing dividends to shareholders and voting rights
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.
Test your knowledge about stocks and cryptocurrency ownership with this quiz. Learn about the concept of owning shares in a publicly traded corporation, the advantages of owning stocks, and the characteristics of cryptocurrency as a digital asset.
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