Exam 11: Personal Investing - Investing in Stocks

When reviewing a corporate income statement,to find gross profit,cost of goods sold is subtracted from

Which of the following techniques is regarded as fundamental analysis?

A stock purchase of 100 shares of CN at $30 per share requiring a 30% margin means you would need $900 cash to make the purchase.

When the federal government fiscal policy moves to increases taxes,these revenues would generally be used to stimulate economic growth.

Technical analysis provides insight into psychological factors impacting stock prices.

When the Bank of Canada uses interest rates to regulate the economy,it is using

Some limitations of the P/E method of valuing stocks include all of the following except

Computer systems that match up buyers and sellers of stocks,even at night when the other exchanges are closed,are

Which of the following ratios measures efficiency?

Low interest rates tend to entice investors into the stock market where they can achieve better returns.

When you look at inventory turnover (cost of goods sold divided by average daily inventory),a high ratio means that a company is more efficient than those with lower ratios.

Which of the following methods is used most commonly to value stock?

Stocks would be most favourably affected by

If Jim's stock return was -1 percent and the TSX stock index had a 3 percent return,the excess return of Jim's stock is

To assess the performance of your purchase of TD Bank stock,which index would be the most relevant?

TD Bank pays an annual dividend of $2.12 at the rate of $0.53 quarterly.The stock is trading at $63.21.What is the effective annual yield?

Venture capital refers to funds that investors are prepared invest in risky new businesses with growth potential.

Low interest rates can increase demand for stocks and therefore have a direct impact on stock prices.

You bought IBM stock at $70 per share.It is now $120 a share.You think it could go higher but you are nervous that it could go down and you would lose your gains.To protect your gains but still give yourself the chance to make future profits,you could place a

What is the fair market value of a preferred share that pays $2.25 in dividends per year when long-term government bond yield is 5.42 percent annually?