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1. Do stocks or bonds generally have a higher return? Why? 2. Athough it is uncommon, every year companies go bankrupt. What happens to a company's stocks and bonds when it goes bankrupt? 3. Based on your understanding of stocks and bonds which one would give better protection from inflation? 4. If you have higher risk tolerance would it be better to invest in stocks or bonds? 5. Is it uncommon for the stock market to lose 30% of its value quickly? 6. What is the maximum retum you can eam by purchasing common stock? What is the minimum retum you can make? 7. What are the maximum and minimum retums on a preferred stock investment? 8. What is an IPO? 9. Who gets the money raised in an IPO? 10. Who gets paid when you buy common shares of stock online? 11. Suppose that Company A has paid a small dividend every quarter for several decades. Yesterday they announced that they will no longer be paying dividends. What would you expect the stock market to do in reaction to this news? 12. Rank common stock, preferred stock, and IPOs in order of risk. Explain your decision. 13. Why would you want to invest in more than one stock at a time? 14. Company B has invested an enormous amount of money in environmentally responsible projects and reducing its own pollution. Company C has decided that they will only reconsider their environmental impact if one of their practices is illegal. Which company would you invest in? Why? 15. Which of the companies in the previous question is riskier

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