Question 1

Stocks and bonds are the primary examples of negotiable instruments of ownership or debt.

Accepted Answer

A) True 
 B)False

Question 2

It may take several years for a new corporation to begin paying dividends.

Accepted Answer

A) True 
 B)False

Question 3

For every speculative company that succeeds,many others do poorly or fail altogether.

Accepted Answer

A) True 
 B)False

Question 4

The stock market index of interest to investors who focus on less popular,more speculative  and smaller companies traded in the over-the-counter market is the

Accepted Answer

A) NASDAQ Composite Index. 
B) Wilshire 5000 Index. 
C) Russell 2000 Index. 
D) Speculative Index. 
A) NASDAQ Composite Index. 
B) Wilshire 5000 Index. 
C) Russell 2000 Index. 
D) Speculative Index.

Question 5

A market order instructs the stockbroker to execute an order at the prevailing market price,the current selling price of a security.

Accepted Answer

A) True 
 B)False

Question 6

Bonds are particularly vulnerable to interest rate risk.

Accepted Answer

A) True 
 B)False

Question 7

All stocks pay dividends.

Accepted Answer

A) True 
 B)False

Question 8

A corporation is a state-chartered legal entity that can conduct business operations in its own name.

Accepted Answer

A) True 
 B)False

Question 9

Which is not a regional stock exchange?

Accepted Answer

A) Boston Stock Exchange 
B) Philadelphia Stock Exchange 
C) San Francisco Stock Exchange 
D) New York Stock Exchange 
A) Boston Stock Exchange 
B) Philadelphia Stock Exchange 
C) San Francisco Stock Exchange 
D) New York Stock Exchange

Question 10

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

Accepted Answer

A) stock dividend. 
B) dividend yield. 
C) dividend payout ratio. 
D) dividend per share. 
A) stock dividend. 
B) dividend yield. 
C) dividend payout ratio. 
D) dividend per share.

Question 11

Securities market indexes measure the average value of a number of securities chosen as a sample to reflect the behavior of a more general market.

Accepted Answer

A) True 
 B)False

Question 12

The inverse of the P/E ratio is the

Accepted Answer

A) dividend yield. 
B) income curve. 
C) earnings yield. 
D) earnings per share. 
A) dividend yield. 
B) income curve. 
C) earnings yield. 
D) earnings per share.

Question 13

The legal document detailing the debtor's responsibilities regarding the bond issue is called the

Accepted Answer

A) debenture. 
B) registration. 
C) mortgage obligation. 
D) indenture. 
A) debenture. 
B) registration. 
C) mortgage obligation. 
D) indenture.

Question 14

Preferred stockholders are the first to receive extra dividends resulting from higher than expected profits.

Accepted Answer

A) True 
 B)False

Question 15

____ would be classified as cyclical industries.

Accepted Answer

A) Drug manufacturers 
B) Food retailers 
C) Utility companies 
D) Airlines 
A) Drug manufacturers 
B) Food retailers 
C) Utility companies 
D) Airlines

Question 16

Bonds sold by federal government entities other than the treasury are called agency bonds.

Accepted Answer

A) True 
 B)False

Question 17

Some investors neglect to investigate a stockbroker and lose money as a result.

Accepted Answer

A) True 
 B)False

Question 18

Use the following stock listing for transactions on December 12 to answer the questions:
  
-What was QPZ's latest quarterly dividend?

Accepted Answer

A) $1.20 per share 
B) $0.70 per share 
C) $0.30 per share 
D) $0.075 per share 
A) $1.20 per share 
B) $0.70 per share 
C) $0.30 per share 
D) $0.075 per share

Question 19

The average corporation pays out ____ percent of its after-tax earnings in cash dividends to stockholders.

Accepted Answer

A) 80 to 100 
B) 60 to 80 
C) 40 to 60 
D) 20 to 40 
A) 80 to 100 
B) 60 to 80 
C) 40 to 60 
D) 20 to 40

Question 20

The approximate compound yield (ACY) formula provides a measure of the

Accepted Answer

A) annualized compound growth of any long-term investment. 
B) annualized compound growth of any short-term investment. 
C) total return of any long-term investment. 
D) total return of any short-term investment. 
A) annualized compound growth of any long-term investment. 
B) annualized compound growth of any short-term investment. 
C) total return of any long-term investment. 
D) total return of any short-term investment.

Stocks and bonds are the primary examples of negotiable instruments of ownership or debt.

It may take several years for a new corporation to begin paying dividends.

For every speculative company that succeeds,many others do poorly or fail altogether.

The stock market index of interest to investors who focus on less popular,more speculative and smaller companies traded in the over-the-counter market is the

A market order instructs the stockbroker to execute an order at the prevailing market price,the current selling price of a security.

Bonds are particularly vulnerable to interest rate risk.

All stocks pay dividends.

A corporation is a state-chartered legal entity that can conduct business operations in its own name.

Which is not a regional stock exchange?

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

Securities market indexes measure the average value of a number of securities chosen as a sample to reflect the behavior of a more general market.

The inverse of the P/E ratio is the

The legal document detailing the debtor's responsibilities regarding the bond issue is called the

Preferred stockholders are the first to receive extra dividends resulting from higher than expected profits.

____ would be classified as cyclical industries.

Bonds sold by federal government entities other than the treasury are called agency bonds.

Some investors neglect to investigate a stockbroker and lose money as a result.

Use the following stock listing for transactions on December 12 to answer the questions: -What was QPZ's latest quarterly dividend?

The average corporation pays out ____ percent of its after-tax earnings in cash dividends to stockholders.

The approximate compound yield (ACY) formula provides a measure of the

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Exam 14: Investing in Stocks and Bonds

Stocks and bonds are the primary examples of negotiable instruments of ownership or debt.

It may take several years for a new corporation to begin paying dividends.

For every speculative company that succeeds,many others do poorly or fail altogether.

The stock market index of interest to investors who focus on less popular,more speculative and smaller companies traded in the over-the-counter market is the

A market order instructs the stockbroker to execute an order at the prevailing market price,the current selling price of a security.

Bonds are particularly vulnerable to interest rate risk.

All stocks pay dividends.

A corporation is a state-chartered legal entity that can conduct business operations in its own name.

Which is not a regional stock exchange?

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

Securities market indexes measure the average value of a number of securities chosen as a sample to reflect the behavior of a more general market.

The inverse of the P/E ratio is the

The legal document detailing the debtor's responsibilities regarding the bond issue is called the

Preferred stockholders are the first to receive extra dividends resulting from higher than expected profits.

____ would be classified as cyclical industries.

Bonds sold by federal government entities other than the treasury are called agency bonds.

Some investors neglect to investigate a stockbroker and lose money as a result.

Use the following stock listing for transactions on December 12 to answer the questions: -What was QPZ's latest quarterly dividend?

The average corporation pays out ____ percent of its after-tax earnings in cash dividends to stockholders.

The approximate compound yield (ACY) formula provides a measure of the

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