Question 1

The ________ is the date on which the board of directors announces the amount of the dividend.

Accepted Answer

A)  announcement date 
B)  declaration date 
C)  dividend date 
D)  ex-dividend date 
E)  maturity date 
A)  announcement date 
B)  declaration date 
C)  dividend date 
D)  ex-dividend date 
E)  maturity date

Question 2

Louise Rogers knows that several factors affect the price of a share of common stock.The one that says there is an inverse relationship between interest rates and the value of a share of common stock is the ________ factor.

Accepted Answer

A)  risk and stock valuation 
B)  interest rates and stock valuation 
C)  earnings growth and stock valuation 
D)  interest rates and risk valuation 
E)  interest rates and earnings growth valuation 
A)  risk and stock valuation 
B)  interest rates and stock valuation 
C)  earnings growth and stock valuation 
D)  interest rates and risk valuation 
E)  interest rates and earnings growth valuation

Question 3

Berkshire Hathaway's "A" stock has never split.As a result,in mid-2014 one share of the stock was selling at a price of more than $190,000 per share.

Accepted Answer

A) True 
 B)False

Question 4

A stock market characterized by ________ prices is termed a bear market.

Accepted Answer

A)  falling 
B)  rising 
C)  steady 
D)  none of the above 
A)  falling 
B)  rising 
C)  steady 
D)  none of the above

Question 5

The stocks tracked by the Dow represent over 50% of the market value of the NYSE.

Accepted Answer

A) True 
 B)False

Question 6

Large-caps,mid-caps,and small-caps refer to the size of the firm issuing the stock,more specifically,to its

Accepted Answer

A)  book value. 
B)  market value. 
C)  dividend. 
D)  capacity for growth. 
A)  book value. 
B)  market value. 
C)  dividend. 
D)  capacity for growth.

Question 7

The ________ the firm's earnings growth rate,the ________ the firm's P/E ratio and the ________ the investor's required rate of return,the ________ the P/E ratio.

Accepted Answer

A)  higher; higher; higher; higher 
B)  higher; higher; higher; lower 
C)  higher; higher; lower; lower 
D)  higher; lower; lower; lower 
E)  lower; lower; lower; lower 
A)  higher; higher; higher; higher 
B)  higher; higher; higher; lower 
C)  higher; higher; lower; lower 
D)  higher; lower; lower; lower 
E)  lower; lower; lower; lower

Question 8

A stock market index is a measure of the performance of a group of stocks that represent the market or a sector of the market.

Accepted Answer

A) True 
 B)False

Question 9

The term "bear" stems from the fact that bears raise their paws upward when they attack.

Accepted Answer

A) True 
 B)False

Question 10

The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.

Accepted Answer

A) True 
 B)False

Question 11

Returns from shares of stock come in the form of

Accepted Answer

A)  stock splits. 
B)  capital appreciation. 
C)  dividends. 
D)  All of the above are correct. 
E)  Only B and C are correct. 
A)  stock splits. 
B)  capital appreciation. 
C)  dividends. 
D)  All of the above are correct. 
E)  Only B and C are correct.

Question 12

What are proxy fights?

Accepted Answer

A)  Proxy fights are when two rival companies want the same voters. 
B)  Proxy fights are battles for proxy votes between rival groups of share holders in separate companies. 
C)  Proxy fights are battles for proxy votes between rival groups of share holders in the same company. 
D)  Proxy fights are when shareholders fight over who will cast their votes. 
E)  There is no such thing as a proxy fight. 
A)  Proxy fights are when two rival companies want the same voters. 
B)  Proxy fights are battles for proxy votes between rival groups of share holders in separate companies. 
C)  Proxy fights are battles for proxy votes between rival groups of share holders in the same company. 
D)  Proxy fights are when shareholders fight over who will cast their votes. 
E)  There is no such thing as a proxy fight.

Question 13

By using the risk evaluation tool called beta,you can measure the movement of your individual stock compared to the S&P 500.

Accepted Answer

A) True 
 B)False

Question 14

The book value of a company is calculated by

Accepted Answer

A)  adding the price per share to the dividends paid. 
B)  subtracting its price per share from the dividends paid. 
C)  subtracting the value of all the firm's assets from the value of its liabilities. 
D)  subtracting the value of all the firm's liabilities from the value of its assets. 
A)  adding the price per share to the dividends paid. 
B)  subtracting its price per share from the dividends paid. 
C)  subtracting the value of all the firm's assets from the value of its liabilities. 
D)  subtracting the value of all the firm's liabilities from the value of its assets.

Question 15

Differentiate between the general classifications of common stock.

Accepted Answer

Blue-chip stocks are issued by large,nat

Question 16

Movement in the stock market indexes determines whether it is a bear or bull market.

Accepted Answer

A) True 
 B)False

Question 17

This approach is used regularly by security analysts to measure a stock's relative value,or how much investors are willing to pay for a dollar of the company's earnings.It is found by dividing the price per share by the earnings per share and is called the

Accepted Answer

A)  P/E ratio. 
B)  technical industry analysis. 
C)  fundamental analysis. 
D)  discounted dividends valuation. 
E)  market-to-price ratio. 
A)  P/E ratio. 
B)  technical industry analysis. 
C)  fundamental analysis. 
D)  discounted dividends valuation. 
E)  market-to-price ratio.

Question 18

The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.

Accepted Answer

A) True 
 B)False

Question 19

The ________ date is the date the stock begins trading without dividend,meaning that if you buy it after this date you will not get the dividend for that year.

Accepted Answer

A)  payment date 
B)  declaration date 
C)  ex-dividend date 
D)  reinvestment date 
E)  maturity date 
A)  payment date 
B)  declaration date 
C)  ex-dividend date 
D)  reinvestment date 
E)  maturity date

Question 20

Speculative stocks are often traded through the OTC Bulletin Board.

Accepted Answer

A) True 
 B)False

The ________ is the date on which the board of directors announces the amount of the dividend.

Louise Rogers knows that several factors affect the price of a share of common stock.The one that says there is an inverse relationship between interest rates and the value of a share of common stock is the ________ factor.

Berkshire Hathaway's "A" stock has never split.As a result,in mid-2014 one share of the stock was selling at a price of more than $190,000 per share.

A stock market characterized by ________ prices is termed a bear market.

The stocks tracked by the Dow represent over 50% of the market value of the NYSE.

Large-caps,mid-caps,and small-caps refer to the size of the firm issuing the stock,more specifically,to its

The the firm's earnings growth rate,the the firm's P/E ratio and the the investor's required rate of return,the the P/E ratio.

A stock market index is a measure of the performance of a group of stocks that represent the market or a sector of the market.

The term "bear" stems from the fact that bears raise their paws upward when they attack.

The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.

Returns from shares of stock come in the form of

What are proxy fights?

By using the risk evaluation tool called beta,you can measure the movement of your individual stock compared to the S&P 500.

The book value of a company is calculated by

Differentiate between the general classifications of common stock.

Movement in the stock market indexes determines whether it is a bear or bull market.

This approach is used regularly by security analysts to measure a stock's relative value,or how much investors are willing to pay for a dollar of the company's earnings.It is found by dividing the price per share by the earnings per share and is called the

The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.

The ________ date is the date the stock begins trading without dividend,meaning that if you buy it after this date you will not get the dividend for that year.

Speculative stocks are often traded through the OTC Bulletin Board.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 12: Investing in Stocks

The ________ is the date on which the board of directors announces the amount of the dividend.

Louise Rogers knows that several factors affect the price of a share of common stock.The one that says there is an inverse relationship between interest rates and the value of a share of common stock is the ________ factor.

Berkshire Hathaway's "A" stock has never split.As a result,in mid-2014 one share of the stock was selling at a price of more than $190,000 per share.

A stock market characterized by ________ prices is termed a bear market.

The stocks tracked by the Dow represent over 50% of the market value of the NYSE.

Large-caps,mid-caps,and small-caps refer to the size of the firm issuing the stock,more specifically,to its

The ________ the firm's earnings growth rate,the ________ the firm's P/E ratio and the ________ the investor's required rate of return,the ________ the P/E ratio.

A stock market index is a measure of the performance of a group of stocks that represent the market or a sector of the market.

The term "bear" stems from the fact that bears raise their paws upward when they attack.

The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.

Returns from shares of stock come in the form of

What are proxy fights?

By using the risk evaluation tool called beta,you can measure the movement of your individual stock compared to the S&P 500.

The book value of a company is calculated by

Differentiate between the general classifications of common stock.

Movement in the stock market indexes determines whether it is a bear or bull market.

This approach is used regularly by security analysts to measure a stock's relative value,or how much investors are willing to pay for a dollar of the company's earnings.It is found by dividing the price per share by the earnings per share and is called the

The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.

The ________ date is the date the stock begins trading without dividend,meaning that if you buy it after this date you will not get the dividend for that year.

Speculative stocks are often traded through the OTC Bulletin Board.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

The the firm's earnings growth rate,the the firm's P/E ratio and the the investor's required rate of return,the the P/E ratio.