The Ultimate Investing in a Racehorse Quiz

By: Staff
Image: refer to hsw

About This Quiz

You love horses and you think it might be nice to own a racehorse. Do you really know what you are getting into? Take this quiz before you head out to the stables.

What should you know if you are considering the possibility of investing in a racehorse?

Investing in a racehorse is so full of risks it is usually considered a high-stakes gamble rather than an investment.

What is considered unique about investing in a racehorses?

Racehorses are a unique investment due to the high costs associated with maintenance and care. A racehorse can quickly become a money pit as expenses outstrip any income due to associated fees, taxes and veterinary bills.

What is the best way to become the next racehorse owner?

The best way to buy a racehorse is to join a partnership or buy out an existing partner in a syndicate that already owns a horse. According to Investor Advisor, partnerships sell shares in racehorses much like a Fortune 500 company operates.

According to one study, what is the annual income of a majority of racehorse owners?

According to Mike Brunker of NBCSports.com, 60 percent of racehorse owners had an annual income of $75,000 or less. Perhaps they could have earned more if their racehorse actually won some money.

What do you have to remember when you consider buying a racehorse as an investment?

Horseracing is not just a sport. As an investor it is important to remember that horseracing is a business. Racing a horse that you own is a time-consuming and expensive business.

How much can you expect to pay in expenses for each racehorse per year?

According to David Wharton in the Los Angels Times, you can realistically expect to pay at least $60,000 per year in expenses for each racehorse you own. A racehorse is not exactly an investment that you want to own when you have a small bankroll.

How much can you expect to pay in training fees if you race your horse nationally in the United States?

The racegame.com suggests that training fees can run around $34,000 per annum if you race your horse nationally. Not quite the fee you would expect to pay a personal trainer to get you in shape.

What is a basic rule of thumb that applies to a racehorse?

The more that a horse wins, the more the horse is worth. The key to making money on a racehorse investment is to acquire a winner.

What percentage of the purse will you collect if your horse wins a race?

According to theracinggame.com, the owner of a winning horse will usually receive 60 percent of the purse. That is a very nice slice of the pie, especially if it is a high-stakes race that your horse won.

How much does Kentucky Derby winner Fusaichi typically command for a stud fee?

As quoted on PBS.com, the thoroughbred Fusaichi commands about $200,000 for a stud fee. Considering the fact that Fusaichi was retired from racing at a young age, he could potentially sire hundreds of offspring.

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