Exam 11: Investing in Stocks

What is the total profit from shares that your purchased for $50 each plus a commission of $12, and then sold the shares for $60 each 2 years later minus a commission of $25.

Anne owns 300 shares of Lily Industries.Suppose that for the last calendar quarter, Lily Industries paid $.30 a share.What is the total amount she received in her dividend cheque for this quarter?

A corporation whose stock is owned by relatively few people and is not traded openly in stock markets is called a(n) ____________ corporation.

Assume that you purchased 50 shares of Home Depot stock for $35 a share, that you received an annual dividend of $0.30 a share, and that you sold your Home Depot stock for $40 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question.)

A bear market develops when investors are optimistic about the overall economy and purchase stocks.

What type of stock tends to stay stable during declines in the economy.

Oil-Slick Shipping stock was priced at $70 at the beginning of the year.Over the year the corporation paid a dividend of $3.25 and its stock price at year-end was $65.What is the trailing dividend yield?

If you own 200 preferred shares that is cumulative and is currently 2 years in arrears, what total amount would you be owed if the company has sufficient funds to pay all dividends.The preferred share has a $5 dividend.

A defensive stock is a stock that typically sells for less than $l.

A penny stock typically sells for less than $1 a share

A stock that follows the business cycle of advances and declines in the economy is called a(n) ____________ stock.

A large-cap stock is a stock issued by a company that has capitalization of $150 million or less.

The type of stock that may earn more than the stated dividend if the firm has a good year is ____________ stock.

A cyclical stock is a stock that follows the business cycle of advances and declines in the economy.

What is the total cost when you purchase 100 shares at $44 each and the commission is $11

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a(n)

When the board of directors approves a two for one stock split, the price for each share of stock

When investors purchase stock on margin, they borrow stock from a stockbroker or brokerage firm.

If you own 100 preferred shares that is cumulative and is currently 1 year in arrears, what total amount would you be owed if the company has sufficient funds to pay all dividends.The preferred share has a $4 dividend.

Which of the following statements is not true?