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

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:

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

Related: The Tools You Need to Create a YouTube Recording Studio

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.   

Editor's Pick

Related Topics

Side Hustle

Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First.

The rise of digital automation technology has made starting a passive income side hustle easier and more accessible than ever before.

Side Hustle

He Launched His Creative Side Hustle Out of a Garage. Now It's Worth $225 Million.

Tom Humble, CXO and founder of E.C.D. Automotive Design, followed his passion for custom auto design into big business.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

Living

How to Start a 'Million Dollar' Morning Routine

Restructure your morning with a few simple steps that may help to amplify your energy.

Growing a Business

How an Executive Coach Can Help You Set Better Goals — And Transform Your Business

Ways to enhance your competitive advantage — and psychological wellbeing — with the assistance of a seasoned, results-focused professional.