Do You Know More Than the Average American About Investing? Financial advisor Jeff Rose reviews the answers to an online investing quiz most Americans failed.

By Jeff Rose Jul 15, 2020

Opinions expressed by Entrepreneur contributors are their own.

According to the CNBC article "The Average American Scored an "F' on This Investing Quiz — See How You Do," more than half of the 1,000 people surveyed for the financial site Magnifymoney failed to score above a 40% on a 10-question quiz about investing.

Financial advisor Jeff Rose provides the correct answers to the questions from the quiz with explanations for each. The questions from the quiz are:

Which best describes your understanding of compound interest?
What is the S&P 500?
True or false: When you purchase a stock, that means you're a partial owner of the company.
What is a dividend?
How is a company's share price determined?
What is the Dow Jones?
True or false: Novice investors should focus on timing the market to maximize their investments.
What does it mean when a stock has a high P/E ratio?
How long do you have to hold a stock for it to be considered a long-term investment for tax purposes?
Do all stocks pay dividends to investors?

Jeff Rose

Certified Financial Planner, Author and Blogger

Jeff Rose is an entrepreneur disguised as a certified financial planner, author and blogger. He's best know for his blog GoodFinancialCents.com and book, Soldier of Finance: Take Charge of Your Money and Invest in Your Future. He's also the editor of LifeInsurancebyJeff.com. He escaped a path of financial destruction from dropping out of college with over $20,000 of credit card debt to become a self-made millionaire. His mission is help future generations achieve financial freedom by developing strong money habits and unleashing their entrepreneurial spirit.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Most Popular

See all

Side Hustle

These Brothers Had 'No Income' When They Started a 'Low-Risk, High-Reward' Side Hustle to Chase a Big Dream — Now They've Surpassed $50 Million in Revenue

Sam Lewkowict, co-founder and CEO of men's grooming brand Black Wolf Nation, knows what it takes to harness the power of side gig for success.

By Amanda Breen

Leadership

How to Break Free From the Cycle of Overthinking and Master Your Mind

Discover the true cost of negative thought loops — and practical strategies for nipping rumination in the bud.

By Aytekin Tank

Leadership

How a $10,000 Investment in AI Transformed My Career and Business Strategy

A bold $10,000 investment in AI and machine learning education fundamentally transformed my career and business strategy. Here's how adaption in the ever-evolving realm of AI — with the right investment in education, personal growth and business innovation — can transform your business.

By Jacqueline Ann DeStefano-Tangorra, CPA, CFE, MBA

Science & Technology

3 Major Mistakes Companies Are Making With AI That Is Limiting Their ROI

With so many competing narratives around the future of AI, it's no wonder companies are misaligned on the best approach for integrating it into their organizations.

By Chris Stegner

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

By Vasily Voropaev