Question 1

The record date is the date that the actual dividend payment is made to stockholders.

Accepted Answer

A) True 
 B)False

Question 2

The beta is an index that compares the risk associated with a specific stock issue with the risk of the stock market in general.

Accepted Answer

A) True 
 B)False

Question 3

Diversification means

Accepted Answer

A) Buying a large amount of shares in one company 
B) Buying a large amount of shares in several companies within the same industry 
C) Buying all the shares of any one company 
D) Buying shares in different companies in different industries 
E) Buy a small amount of share in one company 
A) Buying a large amount of shares in one company 
B) Buying a large amount of shares in several companies within the same industry 
C) Buying all the shares of any one company 
D) Buying shares in different companies in different industries 
E) Buy a small amount of share in one company

Question 4

To safeguard investments, stock owners who believe that the price of their stock will go down during an option period will purchase a

Accepted Answer

A) futures contract. 
B) short contract. 
C) call option. 
D) put option. 
E) margin contract. 
A) futures contract. 
B) short contract. 
C) call option. 
D) put option. 
E) margin contract.

Question 5

The right of current stockholders to purchase any new stock that the corporation issues before it is offered to the general public is called a ____________ right.

Accepted Answer

A) conversion 
B) convertible 
C) mandatory 
D) preemptive 
E) corporate 
A) conversion 
B) convertible 
C) mandatory 
D) preemptive 
E) corporate

Question 6

A blue-chip stock is a safe investment that generally attracts conservative investors.

Accepted Answer

A) True 
 B)False

Question 7

The Cumulative feature of a preferred stock is that a corporation may exchange, at its option, for a specified amount of money.

Accepted Answer

A) True 
 B)False

Question 8

The annual dividend yield is calculated by dividing the annual dividend by the initial stock investment.

Accepted Answer

A) True 
 B)False

Question 9

ABC Corporation has 1 million shares outstanding.The corporation's after-tax earnings for 2004 were $2.75 million.What is ABC's EPS for 2004?

Accepted Answer

A) $2.0 
B) $0.75 
C) $1.0 
D) $2.75 
E) $.50 
A) $2.0 
B) $0.75 
C) $1.0 
D) $2.75 
E) $.50

Question 10

Astrid purchased 100 shares of Royal Bank for $76.00/share.Astrid also paid $29 commission.What was the total purchase price for this transaction?

Accepted Answer

A) $29.00 
B) $76.00 
C) $7,600 
D) $7,629 
E) $7,571 
A) $29.00 
B) $76.00 
C) $7,600 
D) $7,629 
E) $7,571

Question 11

The type of preferred stock that may be exchanged at the stockholder's option for common stock is

Accepted Answer

A) corporate bond. 
B) cumulative preferred stock. 
C) participating preferred stock. 
D) convertible preferred stock. 
E) callable preferred stock. 
A) corporate bond. 
B) cumulative preferred stock. 
C) participating preferred stock. 
D) convertible preferred stock. 
E) callable preferred stock.

Question 12

The NASDAQ is an electronic marketplace for over 10,000 different stocks.

Accepted Answer

A) True 
 B)False

Question 13

Becky Harie bought GBX Corporation stock for $24.38 a share.After six months, she received $2.25 in dividends and the market value the stock was $25.01 a share.If Becky decided to sell the stock today, what would be her shareholder return?

Accepted Answer

A) 11.52 percent 
B) 23.03 percent 
C) 11.81 percent 
D) 23.63 percent 
E) 22.62 percent 
A) 11.52 percent 
B) 23.03 percent 
C) 11.81 percent 
D) 23.63 percent 
E) 22.62 percent

Question 14

A limit order is a request that a stock be purchased or sold at the current market price.

Accepted Answer

A) True 
 B)False

Question 15

One hundred shares or a multiple of 100 shares is called a(n) ____________ lot.

Accepted Answer

A) market 
B) limited 
C) round 
D) odd 
E) executive 
A) market 
B) limited 
C) round 
D) odd 
E) executive

Question 16

A private corporation is a corporation whose stocks are traded openly in stock markets and maybe purchased by individuals.

Accepted Answer

A) True 
 B)False

Question 17

PowerLight Corporation holds its annual meeting in April.Marie Stewart, who owns stock in the company, cannot attend the meeting.She can vote by a:

Accepted Answer

A) voluntary certificate. 
B) preemptive right. 
C) participatory certificate. 
D) cumulative certificate. 
E) proxy. 
A) voluntary certificate. 
B) preemptive right. 
C) participatory certificate. 
D) cumulative certificate. 
E) proxy.

Question 18

What does the acronym IPO stand for?

Accepted Answer

A) Initial public offering 
B) Interested public offering 
C) Initial public order 
D) Interested public order 
E) Initial private order 
A) Initial public offering 
B) Interested public offering 
C) Initial public order 
D) Interested public order 
E) Initial private order

Question 19

Which of the following is a high-risk, short-term stock investing technique? I.Purchasing on margin
II)Dollar cost averaging
III)Hedging with options

Accepted Answer

A) I only 
B) II only 
C) III only 
D) I, II and III are correct 
E) I and II are correct 
A) I only 
B) II only 
C) III only 
D) I, II and III are correct 
E) I and II are correct

Question 20

The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.

Accepted Answer

A) True 
 B)False

The record date is the date that the actual dividend payment is made to stockholders.

The beta is an index that compares the risk associated with a specific stock issue with the risk of the stock market in general.

Diversification means

To safeguard investments, stock owners who believe that the price of their stock will go down during an option period will purchase a

The right of current stockholders to purchase any new stock that the corporation issues before it is offered to the general public is called a ____________ right.

A blue-chip stock is a safe investment that generally attracts conservative investors.

The Cumulative feature of a preferred stock is that a corporation may exchange, at its option, for a specified amount of money.

The annual dividend yield is calculated by dividing the annual dividend by the initial stock investment.

ABC Corporation has 1 million shares outstanding.The corporation's after-tax earnings for 2004 were $2.75 million.What is ABC's EPS for 2004?

Astrid purchased 100 shares of Royal Bank for $76.00/share.Astrid also paid $29 commission.What was the total purchase price for this transaction?

The type of preferred stock that may be exchanged at the stockholder's option for common stock is

The NASDAQ is an electronic marketplace for over 10,000 different stocks.

Becky Harie bought GBX Corporation stock for $24.38 a share.After six months, she received $2.25 in dividends and the market value the stock was $25.01 a share.If Becky decided to sell the stock today, what would be her shareholder return?

A limit order is a request that a stock be purchased or sold at the current market price.

One hundred shares or a multiple of 100 shares is called a(n) ____________ lot.

A private corporation is a corporation whose stocks are traded openly in stock markets and maybe purchased by individuals.

PowerLight Corporation holds its annual meeting in April.Marie Stewart, who owns stock in the company, cannot attend the meeting.She can vote by a:

What does the acronym IPO stand for?

Which of the following is a high-risk, short-term stock investing technique? I.Purchasing on margin II)Dollar cost averaging III)Hedging with options

The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters

Exam 11: Investing in Stocks

The record date is the date that the actual dividend payment is made to stockholders.

The beta is an index that compares the risk associated with a specific stock issue with the risk of the stock market in general.

Diversification means

To safeguard investments, stock owners who believe that the price of their stock will go down during an option period will purchase a

The right of current stockholders to purchase any new stock that the corporation issues before it is offered to the general public is called a ____________ right.

A blue-chip stock is a safe investment that generally attracts conservative investors.

The Cumulative feature of a preferred stock is that a corporation may exchange, at its option, for a specified amount of money.

The annual dividend yield is calculated by dividing the annual dividend by the initial stock investment.

ABC Corporation has 1 million shares outstanding.The corporation's after-tax earnings for 2004 were $2.75 million.What is ABC's EPS for 2004?

Astrid purchased 100 shares of Royal Bank for $76.00/share.Astrid also paid $29 commission.What was the total purchase price for this transaction?

The type of preferred stock that may be exchanged at the stockholder's option for common stock is

The NASDAQ is an electronic marketplace for over 10,000 different stocks.

Becky Harie bought GBX Corporation stock for $24.38 a share.After six months, she received $2.25 in dividends and the market value the stock was $25.01 a share.If Becky decided to sell the stock today, what would be her shareholder return?

A limit order is a request that a stock be purchased or sold at the current market price.

One hundred shares or a multiple of 100 shares is called a(n) ____________ lot.

A private corporation is a corporation whose stocks are traded openly in stock markets and maybe purchased by individuals.

PowerLight Corporation holds its annual meeting in April.Marie Stewart, who owns stock in the company, cannot attend the meeting.She can vote by a:

What does the acronym IPO stand for?

Which of the following is a high-risk, short-term stock investing technique? I.Purchasing on margin II)Dollar cost averaging III)Hedging with options

The price-earnings ratio is calculated by dividing the earnings per share of a stock by its fair market value.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Life, Health, and Disability Insurance

Fundamentals of Investing

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters