Question 1

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)________ stock.

Accepted Answer

A) defensive 
B) cyclical 
C) growth 
D) income 
E) blue chip 
A) defensive 
B) cyclical 
C) growth 
D) income 
E) blue chip

Question 2

A stock that pays higher-than-average dividends is called an income stock.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following uses algorithm-driven software to make investment suggestions that will match the investor's profile?

Accepted Answer

A) Morningstar 
B) Reuters 
C) Market Watch 
D) Robo-Advisor 
E) Account Executive 
A) Morningstar 
B) Reuters 
C) Market Watch 
D) Robo-Advisor 
E) Account Executive

Question 4

Equity financing is a preferred choice to provide financing for a corporation because:

Accepted Answer

A) a lender is always available to provide this type of financing. 
B) it does not have to be repaid. 
C) repayment doesn't have to be made for ten years or more. 
D) only interest must be paid for the first five years. 
E) it can wait five years before buying back the shares. 
A) a lender is always available to provide this type of financing. 
B) it does not have to be repaid. 
C) repayment doesn't have to be made for ten years or more. 
D) only interest must be paid for the first five years. 
E) it can wait five years before buying back the shares.

Question 5

If a stock has a 2-for-1 split:

Accepted Answer

A) the value of the stock is guaranteed to increase. 
B) the value of the stock is guaranteed to decrease. 
C) total market capitalization increases. 
D) total market capitalization decreases. 
E) total market capitalization does not change. 
A) the value of the stock is guaranteed to increase. 
B) the value of the stock is guaranteed to decrease. 
C) total market capitalization increases. 
D) total market capitalization decreases. 
E) total market capitalization does not change.

Question 6

Which of the following is an electronic marketplace for buying and selling global stocks and securities?

Accepted Answer

A) New York Stock Exchange 
B) Over-the-counter market 
C) NASDAQ 
D) Tokyo foreign securities exchange 
E) London foreign securities exchange 
A) New York Stock Exchange 
B) Over-the-counter market 
C) NASDAQ 
D) Tokyo foreign securities exchange 
E) London foreign securities exchange

Question 7

Regardless of a stock's classification,a stock is a(n)________ investment because there are no guarantees.

Accepted Answer

A) speculative 
B) conservative 
C) substitute 
D) unwise 
E) sound 
A) speculative 
B) conservative 
C) substitute 
D) unwise 
E) sound

Question 8

The most common stock split is:

Accepted Answer

A) 1-for-2 
B) 2-for-1 
C) 1-for-3 
D) 4-for-1 
E) 5-for-1 
A) 1-for-2 
B) 2-for-1 
C) 1-for-3 
D) 4-for-1 
E) 5-for-1

Question 9

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a ________ order.

Accepted Answer

A) market 
B) limit 
C) stop 
D) round 
E) discretionary 
A) market 
B) limit 
C) stop 
D) round 
E) discretionary

Question 10

A safe investment that generally attracts conservative investors is called a ________ stock.

Accepted Answer

A) penny 
B) cyclical 
C) growth 
D) small cap 
E) blue chip 
A) penny 
B) cyclical 
C) growth 
D) small cap 
E) blue chip

Question 11

An investment theory based on the assumption that stock price movements are purely random is called the ________ theory.

Accepted Answer

A) fundamental 
B) technical 
C) efficient market hypothesis 
D) primary 
E) market 
A) fundamental 
B) technical 
C) efficient market hypothesis 
D) primary 
E) market

Question 12

The record date is the date that the actual dividend payment is made to stockholders.

Accepted Answer

A) True 
 B)False

Question 13

Stock owners who believe the price of their stock will go down during an option period will purchase a:

Accepted Answer

A) futures contract. 
B) long contract. 
C) call option. 
D) put option. 
E) margin contract. 
A) futures contract. 
B) long contract. 
C) call option. 
D) put option. 
E) margin contract.

Question 14

Approximately ________ percent of earnings are distributed to stockholders as dividends by most corporations.

Accepted Answer

A) 10 to 20 
B) 25 to 45 
C) 30 to 70 
D) 75 to 95 
E) 100 
A) 10 to 20 
B) 25 to 45 
C) 30 to 70 
D) 75 to 95 
E) 100

Question 15

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

Accepted Answer

A) True 
 B)False

Question 16

Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $24 a share and pays $0.80 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

Accepted Answer

A) 2.5 percent 
B) 7.4 percent 
C) 3.3 percent 
D) 30.0 percent 
E) 40.0 percent 
A) 2.5 percent 
B) 7.4 percent 
C) 3.3 percent 
D) 30.0 percent 
E) 40.0 percent

Question 17

A large cap stock is a stock issued by a corporation that has capitalization of more than $10 billion.

Accepted Answer

A) True 
 B)False

Question 18

Orlando Blodgett is buying stock in the Getaway Caribbean Cruise Company today.He had thought about buying the stock yesterday and if he had,he would have received this quarter's dividend.However,since he waited until today,he will not receive that dividend payment.Given this information,which one of the following dates applies to this stock today?

Accepted Answer

A) Record date 
B) Ex-dividend date 
C) Payment date 
D) Stock split date 
E) Stock repurchase date 
A) Record date 
B) Ex-dividend date 
C) Payment date 
D) Stock split date 
E) Stock repurchase date

Question 19

A low market-to-book ratio could indicate that a stock is undervalued.

Accepted Answer

A) True 
 B)False

Question 20

ABC Corporation has assets that total $24 million and liabilities that total $8 million.It also has 1,000,000 shares of stock outstanding.What is the ABC's book value per share?

Accepted Answer

A) $32 
B) $24 
C) $16 
D) $8 
E) $0 
A) $32 
B) $24 
C) $16 
D) $8 
E) $0

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)________ stock.

A stock that pays higher-than-average dividends is called an income stock.

Which of the following uses algorithm-driven software to make investment suggestions that will match the investor's profile?

Equity financing is a preferred choice to provide financing for a corporation because:

If a stock has a 2-for-1 split:

Which of the following is an electronic marketplace for buying and selling global stocks and securities?

Regardless of a stock's classification,a stock is a(n)________ investment because there are no guarantees.

The most common stock split is:

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a ________ order.

A safe investment that generally attracts conservative investors is called a ________ stock.

An investment theory based on the assumption that stock price movements are purely random is called the ________ theory.

The record date is the date that the actual dividend payment is made to stockholders.

Stock owners who believe the price of their stock will go down during an option period will purchase a:

Approximately ________ percent of earnings are distributed to stockholders as dividends by most corporations.

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $24 a share and pays $0.80 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

A large cap stock is a stock issued by a corporation that has capitalization of more than $10 billion.

A low market-to-book ratio could indicate that a stock is undervalued.

ABC Corporation has assets that total $24 million and liabilities that total $8 million.It also has 1,000,000 shares of stock outstanding.What is the ABC's book value per share?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 14: Investing in Stocks

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)________ stock.

A stock that pays higher-than-average dividends is called an income stock.

Which of the following uses algorithm-driven software to make investment suggestions that will match the investor's profile?

Equity financing is a preferred choice to provide financing for a corporation because:

If a stock has a 2-for-1 split:

Which of the following is an electronic marketplace for buying and selling global stocks and securities?

Regardless of a stock's classification,a stock is a(n)________ investment because there are no guarantees.

The most common stock split is:

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a ________ order.

A safe investment that generally attracts conservative investors is called a ________ stock.

An investment theory based on the assumption that stock price movements are purely random is called the ________ theory.

The record date is the date that the actual dividend payment is made to stockholders.

Stock owners who believe the price of their stock will go down during an option period will purchase a:

Approximately ________ percent of earnings are distributed to stockholders as dividends by most corporations.

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $24 a share and pays $0.80 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

A large cap stock is a stock issued by a corporation that has capitalization of more than $10 billion.

A low market-to-book ratio could indicate that a stock is undervalued.

ABC Corporation has assets that total $24 million and liabilities that total $8 million.It also has 1,000,000 shares of stock outstanding.What is the ABC's book value per share?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters