Question 1

If Widget Corp.has a PEG value of .50,the stock is most likely:

Accepted Answer

A) undervalued based on its projected growth rate. 
B) overvalued based on its projected growth rate. 
C) overvalued based on its $0.50 per share dividend. 
D) overvalued based on its good historical earnings. 
E) undervalued based on its poor historical earnings. 
A) undervalued based on its projected growth rate. 
B) overvalued based on its projected growth rate. 
C) overvalued based on its $0.50 per share dividend. 
D) overvalued based on its good historical earnings. 
E) undervalued based on its poor historical earnings.

Question 2

An investment bank is a financial firm that assists corporations in raising funds,usually by helping to sell new security issues.

Accepted Answer

A) True 
 B)False

Question 3

A stock that sells for $5 or less per share is called a ________ stock.

Accepted Answer

A) fractional 
B) penny 
C) dollar 
D) ten-dollar 
E) coin 
A) fractional 
B) penny 
C) dollar 
D) ten-dollar 
E) coin

Question 4

Describe information that may help you decide whether to use a full-service,discount,or online brokerage firm.

Accepted Answer

Full service: Beginning investors with l

Question 5

Stock dividends are declared by the:

Accepted Answer

A) chief financial officer. 
B) board of directors. 
C) stockholders. 
D) corporate employees. 
E) U)S.government. 
A) chief financial officer. 
B) board of directors. 
C) stockholders. 
D) corporate employees. 
E) U)S.government.

Question 6

Because of the need for secrecy,most corporations do not supply financial information about their company on their websites.

Accepted Answer

A) True 
 B)False

Question 7

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:

Accepted Answer

A) dollar cost averaging. 
B) dividend reinvestment plan. 
C) buy and hold technique. 
D) regulated transaction. 
E) secured transaction. 
A) dollar cost averaging. 
B) dividend reinvestment plan. 
C) buy and hold technique. 
D) regulated transaction. 
E) secured transaction.

Question 8

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.8.If the stock market increases in value by 5 percent,what is the expected increase in value for the World-Wide Productions stock?

Accepted Answer

A) 1 percent 
B) 5 percent 
C) 14 percent 
D) 28 percent 
E) 30 percent 
A) 1 percent 
B) 5 percent 
C) 14 percent 
D) 28 percent 
E) 30 percent

Question 9

Dividends remain with the stock until:

Accepted Answer

A) one business day before the date of record. 
B) two business days after the date of record. 
C) three days before the date of record. 
D) three days after the date of record. 
E) three days before the actual payment date. 
A) one business day before the date of record. 
B) two business days after the date of record. 
C) three days before the date of record. 
D) three days after the date of record. 
E) three days before the actual payment date.

Question 10

Amy Farmer just received a legal form in the mail from a firm in which she owns stock.This form lists the issues to be decided at the annual stockholders' meeting and asks her to give written permission for someone else to vote for her if she cannot attend.What form has she received in the mail?

Accepted Answer

A) Equity 
B) Proxy 
C) Voting rights 
D) Dividends 
E) Call option 
A) Equity 
B) Proxy 
C) Voting rights 
D) Dividends 
E) Call option

Question 11

The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.

Accepted Answer

A) True 
 B)False

Question 12

Today most investors buy or sell stocks ________.

Accepted Answer

A) in person at company headquarters 
B) online 
C) in person at NASDAQ 
D) in person at the full-service brokerage firm 
E) in person at the discount broker firm 
A) in person at company headquarters 
B) online 
C) in person at NASDAQ 
D) in person at the full-service brokerage firm 
E) in person at the discount broker firm

Question 13

Which one of the following statements is true?

Accepted Answer

A) Corporate dividends for common stock must be paid in cash only. 
B) Stockholders must elect the board of directors. 
C) The selling price of stock is determined by how much the corporation is willing to receive. 
D) Corporations are required by law to have two stockholder meetings each year. 
E) Stockholders may vote only by proxy. 
A) Corporate dividends for common stock must be paid in cash only. 
B) Stockholders must elect the board of directors. 
C) The selling price of stock is determined by how much the corporation is willing to receive. 
D) Corporations are required by law to have two stockholder meetings each year. 
E) Stockholders may vote only by proxy.

Question 14

The federal government requires corporations selling new issues of securities to disclose information about itself in a prospectus.Which of the following must be disclosed?

Accepted Answer

A) Corporate earnings 
B) Assets and liabilities 
C) Products or services 
D) Qualifications of top management 
E) All of these must be disclosed. 
A) Corporate earnings 
B) Assets and liabilities 
C) Products or services 
D) Qualifications of top management 
E) All of these must be disclosed.

Question 15

A market order is a request to buy or sell a stock at the current market value.

Accepted Answer

A) True 
 B)False

Question 16

Both limit and _____orders may be good for one day,one week,one month,good until canceled,or a specified date.

Accepted Answer

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

Question 17

Fred Manufacturing Company pays an annual dividend of $0.80 per share,has earnings per share of $2.50,and sells for $35 a share.What is this company's dividend payout ratio?

Accepted Answer

A) 8 percent 
B) 25 percent 
C) 28 percent 
D) 32 percent 
E) 35 percent 
A) 8 percent 
B) 25 percent 
C) 28 percent 
D) 32 percent 
E) 35 percent

Question 18

A large cap stock is a stock issued by a corporation that has a capitalization in excess of how much?

Accepted Answer

A) $10 billion 
B) $20 billion 
C) $30 billion 
D) $40 billion 
E) $50 billion 
A) $10 billion 
B) $20 billion 
C) $30 billion 
D) $40 billion 
E) $50 billion

Question 19

Which of the following most likely does not charge a fee for you to access any of their information that may be used to evaluate a stock investment?

Accepted Answer

A) Value Line 
B) Morningstar 
C) Yahoo! Finance 
D) Standard & Poor's 
E) Reuters 
A) Value Line 
B) Morningstar 
C) Yahoo! Finance 
D) Standard & Poor's 
E) Reuters

Question 20

The beta for the S&P 500 is defined as:

Accepted Answer

A) 0 
B) 1.0 
C) 10.0 
D) 50.0 
E) 100.0 
A) 0 
B) 1.0 
C) 10.0 
D) 50.0 
E) 100.0

If Widget Corp.has a PEG value of .50,the stock is most likely:

An investment bank is a financial firm that assists corporations in raising funds,usually by helping to sell new security issues.

A stock that sells for $5 or less per share is called a ________ stock.

Describe information that may help you decide whether to use a full-service,discount,or online brokerage firm.

Stock dividends are declared by the:

Because of the need for secrecy,most corporations do not supply financial information about their company on their websites.

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.8.If the stock market increases in value by 5 percent,what is the expected increase in value for the World-Wide Productions stock?

Dividends remain with the stock until:

Amy Farmer just received a legal form in the mail from a firm in which she owns stock.This form lists the issues to be decided at the annual stockholders' meeting and asks her to give written permission for someone else to vote for her if she cannot attend.What form has she received in the mail?

The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.

Today most investors buy or sell stocks ________.

Which one of the following statements is true?

The federal government requires corporations selling new issues of securities to disclose information about itself in a prospectus.Which of the following must be disclosed?

A market order is a request to buy or sell a stock at the current market value.

Both limit and _____orders may be good for one day,one week,one month,good until canceled,or a specified date.

Fred Manufacturing Company pays an annual dividend of $0.80 per share,has earnings per share of $2.50,and sells for $35 a share.What is this company's dividend payout ratio?

A large cap stock is a stock issued by a corporation that has a capitalization in excess of how much?

Which of the following most likely does not charge a fee for you to access any of their information that may be used to evaluate a stock investment?

The beta for the S&P 500 is defined as:

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

Exam 14: Investing in Stocks

If Widget Corp.has a PEG value of .50,the stock is most likely:

An investment bank is a financial firm that assists corporations in raising funds,usually by helping to sell new security issues.

A stock that sells for $5 or less per share is called a ________ stock.

Describe information that may help you decide whether to use a full-service,discount,or online brokerage firm.

Stock dividends are declared by the:

Because of the need for secrecy,most corporations do not supply financial information about their company on their websites.

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called:

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.8.If the stock market increases in value by 5 percent,what is the expected increase in value for the World-Wide Productions stock?

Dividends remain with the stock until:

Amy Farmer just received a legal form in the mail from a firm in which she owns stock.This form lists the issues to be decided at the annual stockholders' meeting and asks her to give written permission for someone else to vote for her if she cannot attend.What form has she received in the mail?

The book value for a share of stock is determined by deducting all liabilities from the corporation's assets and dividing the remainder by the number of outstanding shares of common stock.

Today most investors buy or sell stocks ________.

Which one of the following statements is true?

The federal government requires corporations selling new issues of securities to disclose information about itself in a prospectus.Which of the following must be disclosed?

A market order is a request to buy or sell a stock at the current market value.

Both limit and _____orders may be good for one day,one week,one month,good until canceled,or a specified date.

Fred Manufacturing Company pays an annual dividend of $0.80 per share,has earnings per share of $2.50,and sells for $35 a share.What is this company's dividend payout ratio?

A large cap stock is a stock issued by a corporation that has a capitalization in excess of how much?

Which of the following most likely does not charge a fee for you to access any of their information that may be used to evaluate a stock investment?

The beta for the S&P 500 is defined as:

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