Building a Billion: Do you know how to make serious money?
Some people have a knack for making money. Everything they touch seems to turn to gold, silver or oil. Are you one of them? Could you amass a billion dollars or perhaps a tad smaller amount?
Let’s start with some basic terminology. What’s the difference between a stock and a bond?
- Purchasing a bond, not a stock, means that you have ownership in that company.
- Owning a stock means you own part of that company, while purchasing a bond means that you’re lending that company money.
- Bonds are a riskier investment than stocks.
Which one of these three careers had the best chance of getting you in the 2013 billionaire’s club?
- sports team owner
- media mogul
What’s the best way to strike it rich in Asia?
- own a high-tech firm
- sell real estate
- own a manufacturing company
Which of the following annual household income levels fits the definition of “rich” for most Americans?
- $1 million
How many households in the U.S. earn $1 million or more?
Why do 40 percent of millionaires feel they are not wealthy?
- They have huge alimony payments.
- They made their money illegally.
- They have less than $7.5 million in the bank.
Which form of legalized gambling is least likely to make you wealthy?
- state-run lottery
- casino gambling
- horse racing
What do you think is the top business to be in if you want to become a billionaire?
- real estate
What does Warren Buffett say is the best way to make oodles of cash?
- bilk your partners
- reinvest your profits
- be a tough negotiator
Which of the following paths is the best one for becoming a millionaire?
- start your own business
- start a Ponzi scheme
- inherit your wealth
What do some experts say is one component of amassing wealth?
- invest other people’s money
- live below your means
- wait for that rich aunt to die
Which of the following small businesses could be a good investment?
- freestanding surgical and emergency centers
- tax preparation services
- orthodontic offices
Which of the following countries had the most billionaires in 2013?
- United States
OK, but which region boasted the most billionaires in the construction and engineering business?
- United States
- Middle East and Africa
Which investment do you think makes more sense in the 2013 economic climate?
- investing in gold
- investing in silver
- investing in oil
What’s the best definition for a “speculator?”
- a person who assumes an unusual business risk in the hopes of making a huge profit
- a person who buys more bonds than stocks
- a person who lets others take a huge financial risk in the hope of making a big profit
What can happen if you buy a company’s stock on margin?
- You will not lose your investment if that company goes bankrupt.
- You can lose your initial investment plus much more.
- You can be held liable for that company’s bad business practices.
Which type of bond is considered to be the safest?
- U.S. Treasury
Which of the following statements is true?
- If interest rates go down, then bond prices rise.
- If interest rates go down, then bond prices also go down.
- If interest rates go down, then bond prices stay the same.
What type of company would issue a “junk bond?”
- a Fortune 500 company
- a company with a good credit rating
- a company with a poor credit rating