International stock funds open new investment opportunities in a world that is growing ever more connected. However, is a new opportunity automatically a good one? Find out what you know about these funds by taking this quiz, and learn whether they are a good choice for your investments.
What is an international stock fund?
a type of mutual fund
the pooled money of international investors
a fund that buys overstocked foreign products
What exactly is stock in a company?
a share of ownership
a temporary loan of capital
an agreement to purchase at a later date
What is a dividend?
a portion of profits paid to the stockholders
a rise in the price of the stock's shares
a cash bonus that is designed to encourage the initial purchase of the stock
Where were mutual funds invented?
The United States
What is the main benefit of investing via a mutual fund?
more purchasing power
no capital gains taxes
one person's investment loss can be covered by another's gain
Who decides which stocks the mutual fund buys?
a professional investment manager
the fund's shareholders vote on it
each individual shareholder chooses where to invest his or her portion of the funds
Which type of international stock fund invests specifically in the companies of developing countries?
diversified international stock funds
specialized international stock funds
global international stock funds
What is a global international stock fund?
a fund that invests largely in both U.S. and foreign stocks
a fund that invests almost exclusively in non-American companies
a fund that invests in an equal distribution of companies on each continent
What is a close-ended mutual fund?
one that can only be sold to another investor, not back to the fund, until the fund closes
one that cannot be sold to anyone other than the fund itself
one that has a fixed term of investment before the fund terminates
What is a stock fund's "load?"
the sales charges it places on sales of shares
the length of time you must keep shares before you can sell them