QUIZ: Test Your Investing Knowledge

The average person doesn't know much about investing.

In fact, FINRA said in a recent financial survey that around 71% of Americans believe they have a high level of financial literacy…

Except when tested on finance topics, on average, respondents were only able to answer half of the questions correctly.

So, we thought it’d be fun to ask you, how much do you *actually* know about investing?

1) What is the average annual S&P return (since inception in 1957)?

1. 5.5%
2. 9%
3. 10.5%
4. 21%

2) If you buy a company’s stock…

1. You’ve loaned the company money
2. You own a part of the company
3. You are responsible for debts of the company
4. The company will return your investment with interest added on

3) What’s the difference between a Roth and a traditional retirement account?

1. Roth contributions are pre-tax, while traditional contributions are after tax.
2. Roth’s don’t have penalties for withdrawing earnings early
3. Roth contributions are after-tax, while traditional retirement contributions are pre-tax
4. You have a huge tax penalty on Roth contributions when you finally withdraw money

4) A Brazilian study of day traders found that ____ percent of traders that persisted for 300 days made money.

1. 17%
2. 50%
3. 88%
4. 3%

5) Motley Fool Stock Advisor has seen returns on our picks as high as 15,000%

1. True
2. False

How Do You Think You Did?