Skip to main content

Sharpen your pencils, grab a calculator and tell the family to be quiet for the next 15 minutes so you can concentrate.

It’s time for the annual Investor Clinic quiz.

As usual, there are a few gimmes but watch out for the traps. If you’re left scratching your head by any of the answers, drop me an e-mail and I’ll explain them in a future column.

Story continues below advertisement

E-mail your questions to jheinzl@globeandmail.com.

1Clarice holds an exchange-traded fund in her tax-free savings account (TFSA) and noticed that the ETF distributed a large sum of return of capital (ROC) in 2018. For tax purposes, she is required to:
A. Subtract the ROC from her cost base
B. Add the ROC to her cost base
C. Report the ROC as a capital gain
D. Do nothing

Answer: D. Do nothing

2As of Jan. 1, 2019, the annual contribution limit for tax-free savings accounts will:
A. Rise to $6,000 from $5,500
B. Rise to $5,750 from $5,500
C. Rise to $5,750 from $5,250
D. Fall to $5,500 from $10,000

Answer: A. Rise to $6,000 from $5,500

3Under enhancements to the Canada Pension Plan, in 2019 employers and employees will each pay ____ per cent of pensionable earnings (above $3,500) toward the CPP, up from 4.95 per cent currently. By 2023, the contribution rate will rise to ____ per cent.
A. 5.45; 6.95
B. 5.10; 5.95
C. 6.95; 8.95
D. 5.90; 6.95

Answer: B. 5.10; 5.95

4As of Dec. 20, the yield on the five-year Government of Canada bond was about:
A. 2.45 per cent
B. 2.33 per cent
C. 2.17 per cent
D. 1.95 per cent

Answer: D. 1.95 per cent

5Steve bought 100 shares of Blockchain Marijuana Renewable Energy Corp., which subsequently plunged 80 per cent when a short-seller’s report alleged the company is a scam. The last day Steve can sell the shares and claim a capital loss for 2018 is:
A. Dec. 26
B. Dec. 27
C. Dec. 28
D. Dec. 31

Answer: B. Dec. 27

6Through Dec. 20, the best- and worst-performing stocks on the S&P/TSX Composite Index for 2018 were:
A. Canada Goose; Crescent Point Energy
B. Kirkland Lake Gold; Baytex Energy
C. Nevsun Resources; Maxar Technologies
D. Great Canadian Gaming; Aphria

Answer: C. Nevsun Resources; Maxar Technologies

7Santa Claus is thinking about retiring and living off the dividends from his toy and entertainment company stocks. When he sits down to calculate his income, however, he is shocked to discover that one of his stocks paid no dividends in 2018. Which stock is it?
A. Mattel
B. Hasbro
C. Walt Disney
D. Activision Blizzard

Answer: A. Mattel

8Ms. Claus doesn’t trust Santa’s financial judgment and has built her own dividend-stock portfolio that includes Royal Bank (RY), Enbridge (ENB), BCE (BCE) and Fortis (FTS). Rank the stocks in ascending order of yield:
A. RY, FTS, ENB, BCE
B. FTS, BCE, RY, ENB
C. RY, BCE, ENB, FTS
D. FTS, RY, BCE, ENB

Answer: D. FTS, RY, BCE, ENB

9Which of the following companies did not raise its dividend in 2018?
A. Rogers Communications
B. BCE
C. Telus
D. Quebecor

Answer: A. Rogers Communications

10Justin wanted some U.S. exposure for his non-registered account. In January, 2018, with the Canadian dollar trading at 80 US cents, he bought 100 shares of Microsoft for US$90 each. He later sold the shares for US$112 each when the Canadian dollar was trading at 75 US cents. His capital gain, in Canadian dollars, was:
A. $2,933.33
B. $3,683.33
C. $2,346.67
D. $2,750

Answer: B. $3,683.33

11Wilma buys 400 shares of Slate Rock and Gravel Inc. for $20 each. She later sells 100 shares at $25 each. She then buys 200 shares at $27 each. Ignoring commissions, what is the adjusted cost base per share for her 500 shares?
A. $20.33
B. 21.80
C. 22.80
D. 22.33

Answer: C. 22.80

12When an ETF or mutual fund declares a year-end reinvested or “phantom” non-cash distribution, the amount usually consists of ________ and must be _______ the investor’s adjusted cost base.
A. return of capital; subtracted from
B. dividends; subtracted from
C. return of capital; added to
D. capital gains; added to

Answer: D. capital gains; added to

13There is no withholding tax on dividends from U.S. companies if the shares are held in a:
A. RRSP, RRIF or LIRA
B. TFSA, RRSP or RESP
C. RESP, TFSA or RRSP
D. RESP, TFSA or LIRA

Answer: A. RRSP, RRIF or LIRA

14As of Dec. 20, the S&P/TSX Composite Index was ________ for 2018 and the S&P 500 was ________.
A. down 3.7 per cent; up 3.3 per cent
B. down 4.8 per cent; up 1.1 per cent
C. down 8.9 per cent; down 3.7 per cent
D. down 12.8 per cent; down 7.7 per cent

Answer: D. down 12.8 per cent; down 7.7 per cent

15After a rough year on the stock market, Rudolph’s realized capital losses were $28,500 and his realized capital gains were $1,500. For tax purposes, he can carry back _____ of losses for up to three years or forward ______.
A. $28,500; three years
B. $27,000; indefinitely
C. $27,000; five years
D. $28,500, indefinitely

Answer: B. $27,000; indefinitely

How did you do?

Answer all of the questions to see your result
Well done!
Not bad!
Nice try, but you missed some.

Reading this article on our app? Visit this link in your browser: tgam.ca/investing-quiz-2018

Report an error Editorial code of conduct
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • All comments will be reviewed by one or more moderators before being posted to the site. This should only take a few moments.
  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed. Commenters who repeatedly violate community guidelines may be suspended, causing them to temporarily lose their ability to engage with comments.

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Cannabis pro newsletter