Question 1

Gilbert and Associates,Inc.has a book value of $500,000,a market price per share of stock of $25,and 33,333 outstanding shares.What is its price-to-book ratio?

Accepted Answer

A) 4.0 
B) 3.5 
C) 2.0 
D) 1.7 
A) 4.0 
B) 3.5 
C) 2.0 
D) 1.7

Question 2

When a company issues a new security,it must file an annual report.

Accepted Answer

A) True 
 B)False

Question 3

A week order is good for five business days.

Accepted Answer

A) True 
 B)False

Question 4

The dividend yield is the cash dividend return to an investor expressed as a percentage of the price of a security.

Accepted Answer

A) True 
 B)False

Question 5

Jensen and Flubb,Inc.,has 17,000 shares of common stock outstanding with a market value of $86 a share.Jensen and Flubb's total sales over the past year were $2,860,000.What is this company's price-to-sales ratio?

Accepted Answer

A) 0.01 
B) 0.51 
C) 1.96 
D) 0.49 
A) 0.01 
B) 0.51 
C) 1.96 
D) 0.49

Question 6

Which of the following automatically updates the value of your portfolio?

Accepted Answer

A) stock screener 
B) portfolio tracker 
C) net worth spreadsheet 
D) portfolio screener 
A) stock screener 
B) portfolio tracker 
C) net worth spreadsheet 
D) portfolio screener

Question 7

The amount loaned when a bond is issued is

Accepted Answer

A) the principal. 
B) its maturity. 
C) its par value. 
D) the dividend. 
A) the principal. 
B) its maturity. 
C) its par value. 
D) the dividend.

Question 8

A bond selling at more than its face value is selling at a premium.

Accepted Answer

A) True 
 B)False

Question 9

ACB,Inc.,has a beta of 1.2.If the market as a whole goes up 15 percent,we would expect ACB's market value to go

Accepted Answer

A) up 15 percent. 
B) down 15 percent. 
C) up 18 percent. 
D) down 18 percent. 
A) up 15 percent. 
B) down 15 percent. 
C) up 18 percent. 
D) down 18 percent.

Question 10

The difference between the bid price and the asked price is called the spread.

Accepted Answer

A) True 
 B)False

Question 11

The P/E ratios of well-known growth stocks are generally higher than those of lesser-known growth stocks.

Accepted Answer

A) True 
 B)False

Question 12

A company that has a capitalization of $300 million to $2 billion is called a ____ stock.

Accepted Answer

A) large-cap 
B) midcap 
C) small-cap 
D) microcap 
A) large-cap 
B) midcap 
C) small-cap 
D) microcap

Question 13

Ginnie Mae and Freddie Mac bonds are examples of ____ bonds.

Accepted Answer

A) U.S. Series EE savings 
B) Treasury 
C) ederal agency 
D) municipal 
A) U.S. Series EE savings 
B) Treasury 
C) ederal agency 
D) municipal

Question 14

Benny is considering investing in Larkman,Inc.The current price of Larkman is $62 a share,the after-tax earnings are $37,900,000,and there are 13,000,000 outstanding shares of common stock.What is Larkman's price/earnings ratio?

Accepted Answer

A) 15.5 
B) 21.3 
C) 4.77 
D) 17.6 
A) 15.5 
B) 21.3 
C) 4.77 
D) 17.6

Question 15

The average price per share is higher in the American Stock Exchange than in the New York Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 16

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year:
  
-What is Sudsy Soap's dividend per share?

Accepted Answer

A) $1.15 
B) $0.75 
C) $0.50 
D) $0.25 
A) $1.15 
B) $0.75 
C) $0.50 
D) $0.25

Question 17

An investor who expected an economic downturn would want to put his or her stock portfolio in ____ stocks.

Accepted Answer

A) cyclical 
B) well-known growth 
C) speculative 
D) countercyclical 
A) cyclical 
B) well-known growth 
C) speculative 
D) countercyclical

Question 18

Capital gains on the sale of municipal bonds are taxable.

Accepted Answer

A) True 
 B)False

Question 19

The smallest round lot of stock is 50 shares.

Accepted Answer

A) True 
 B)False

Question 20

Investors can purchase Treasury securities directly from the Treasury.

Accepted Answer

A) True 
 B)False

Gilbert and Associates,Inc.has a book value of $500,000,a market price per share of stock of $25,and 33,333 outstanding shares.What is its price-to-book ratio?

When a company issues a new security,it must file an annual report.

A week order is good for five business days.

The dividend yield is the cash dividend return to an investor expressed as a percentage of the price of a security.

Jensen and Flubb,Inc.,has 17,000 shares of common stock outstanding with a market value of $86 a share.Jensen and Flubb's total sales over the past year were $2,860,000.What is this company's price-to-sales ratio?

Which of the following automatically updates the value of your portfolio?

The amount loaned when a bond is issued is

A bond selling at more than its face value is selling at a premium.

ACB,Inc.,has a beta of 1.2.If the market as a whole goes up 15 percent,we would expect ACB's market value to go

The difference between the bid price and the asked price is called the spread.

The P/E ratios of well-known growth stocks are generally higher than those of lesser-known growth stocks.

A company that has a capitalization of $300 million to $2 billion is called a ____ stock.

Ginnie Mae and Freddie Mac bonds are examples of ____ bonds.

Benny is considering investing in Larkman,Inc.The current price of Larkman is $62 a share,the after-tax earnings are $37,900,000,and there are 13,000,000 outstanding shares of common stock.What is Larkman's price/earnings ratio?

The average price per share is higher in the American Stock Exchange than in the New York Stock Exchange.

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year: -What is Sudsy Soap's dividend per share?

An investor who expected an economic downturn would want to put his or her stock portfolio in ____ stocks.

Capital gains on the sale of municipal bonds are taxable.

The smallest round lot of stock is 50 shares.

Investors can purchase Treasury securities directly from the Treasury.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

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Exam 14: Investing in Stocks and Bonds

Gilbert and Associates,Inc.has a book value of $500,000,a market price per share of stock of $25,and 33,333 outstanding shares.What is its price-to-book ratio?

When a company issues a new security,it must file an annual report.

A week order is good for five business days.

The dividend yield is the cash dividend return to an investor expressed as a percentage of the price of a security.

Jensen and Flubb,Inc.,has 17,000 shares of common stock outstanding with a market value of $86 a share.Jensen and Flubb's total sales over the past year were $2,860,000.What is this company's price-to-sales ratio?

Which of the following automatically updates the value of your portfolio?

The amount loaned when a bond is issued is

A bond selling at more than its face value is selling at a premium.

ACB,Inc.,has a beta of 1.2.If the market as a whole goes up 15 percent,we would expect ACB's market value to go

The difference between the bid price and the asked price is called the spread.

The P/E ratios of well-known growth stocks are generally higher than those of lesser-known growth stocks.

A company that has a capitalization of $300 million to $2 billion is called a ____ stock.

Ginnie Mae and Freddie Mac bonds are examples of ____ bonds.

Benny is considering investing in Larkman,Inc.The current price of Larkman is $62 a share,the after-tax earnings are $37,900,000,and there are 13,000,000 outstanding shares of common stock.What is Larkman's price/earnings ratio?

The average price per share is higher in the American Stock Exchange than in the New York Stock Exchange.

Toni and Felix are considering buying stock. They would like to purchase 600 shares of Sudsy Soap stock at $35 a share. Sudsy Soap had the following figures for the past year: -What is Sudsy Soap's dividend per share?

An investor who expected an economic downturn would want to put his or her stock portfolio in ____ stocks.

Capital gains on the sale of municipal bonds are taxable.

The smallest round lot of stock is 50 shares.

Investors can purchase Treasury securities directly from the Treasury.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters