Question 1

The Toronto Stock Exchange is what type of market

Accepted Answer

A) Primary 
B) Secondary 
C) Tertiary 
D) Electronic 
E) Closed 
A) Primary 
B) Secondary 
C) Tertiary 
D) Electronic 
E) Closed

Question 2

Convertible preferred stock may be exchanged, at the shareholder's option, for a specified number of shares of common stock.

Accepted Answer

A) True 
 B)False

Question 3

A request that an order be executed at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

Accepted Answer

A) market 
B) limit 
C) stop 
D) round 
E) discretionary 
A) market 
B) limit 
C) stop 
D) round 
E) discretionary

Question 4

A stock that remains stable during declines in the economy is called a(n) ____________ stock.

Accepted Answer

A) defensive 
B) cyclical 
C) growth 
D) income 
E) blue-chip 
A) defensive 
B) cyclical 
C) growth 
D) income 
E) blue-chip

Question 5

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

Accepted Answer

A) public 
B) private 
C) partnership 
D) common 
E) preferred 
A) public 
B) private 
C) partnership 
D) common 
E) preferred

Question 6

A speculative technique whereby an investor borrows part of the money needed to buy a particular stock.

Accepted Answer

A) dollar cost averaging. 
B) dividend reinvestment plan. 
C) buy and hold technique. 
D) margin. 
E) secured transaction. 
A) dollar cost averaging. 
B) dividend reinvestment plan. 
C) buy and hold technique. 
D) margin. 
E) secured transaction.

Question 7

Marianne Walsh bought XYZ Corporation stocks for $26 a share at the beginning of 2019.At year-end, she received a dividend of $1.75 per share and then sold the stock for $30.50 a share.What was Marianne's annual shareholder return on the investment?

Accepted Answer

A) 6.25 percent 
B) 10.83 percent 
C) 17.31 percent 
D) 20.49 percent 
E) 24.04 percent 
A) 6.25 percent 
B) 10.83 percent 
C) 17.31 percent 
D) 20.49 percent 
E) 24.04 percent

Question 8

The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.

Accepted Answer

A) True 
 B)False

Question 9

It is common for professional advisory services like SEDAR, Moody's, Standard & Poor's, and Value Line to charge for more detailed financial information than provided on other Internet Web sites.

Accepted Answer

A) True 
 B)False

Question 10

An order to buy or sell a security that lets the broker decide when to execute the transaction and at what price is called a ____________ order.

Accepted Answer

A) market 
B) limit 
C) stop 
D) round 
E) discretionary 
A) market 
B) limit 
C) stop 
D) round 
E) discretionary

Question 11

Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?

Accepted Answer

A) $50.00 
B) $86.00 
C) $8,650.00 
D) $8,289.50 
E) $860.00 
A) $50.00 
B) $86.00 
C) $8,650.00 
D) $8,289.50 
E) $860.00

Question 12

A request that a stock be bought or sold at the current market price is called a ____________ order.

Accepted Answer

A) market 
B) limit 
C) stop 
D) round 
E) discretionary 
A) market 
B) limit 
C) stop 
D) round 
E) discretionary

Question 13

Dividend payments on common stock are guaranteed, but the amount is determined by the board of directors.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a true statement?

Accepted Answer

A) A high price-earnings ratio means high projected earnings in the future. 
B) The price-earnings ratio for a corporation must be studied over a period of time. 
C) The price-earnings ratio is based on the company's dividends. 
D) The price-earnings ratio for one firm may be compared to the price-earnings ratio for all firms. 
E) A low price-earnings ratio indicates that a stock may be a good investment and a high price-earnings ratios may indicate that it is a poor investment. 
A) A high price-earnings ratio means high projected earnings in the future. 
B) The price-earnings ratio for a corporation must be studied over a period of time. 
C) The price-earnings ratio is based on the company's dividends. 
D) The price-earnings ratio for one firm may be compared to the price-earnings ratio for all firms. 
E) A low price-earnings ratio indicates that a stock may be a good investment and a high price-earnings ratios may indicate that it is a poor investment.

Question 15

What is the smallest sector of the Toronto Stock Exchange (of those listed)?

Accepted Answer

A) Energy 
B) Industrials 
C) Utilities 
D) Financials 
E) Materials 
A) Energy 
B) Industrials 
C) Utilities 
D) Financials 
E) Materials

Question 16

Cumulative preferred stocks are stocks with unpaid dividends that accumulate and must be paid before any cash dividend is paid to the common shareholders.

Accepted Answer

A) True 
 B)False

Question 17

What is the total profit from shares that your purchased for $33 each plus a commission of $9, and then sold the shares for $44 each 2 years later minus a commission of $15.

Accepted Answer

A) $11 
B) $53 
C) $4400 
D) $3309 
E) $1076 
A) $11 
B) $53 
C) $4400 
D) $3309 
E) $1076

Question 18

Because Xerox is a ____________ corporation, an investor can purchase stock with the help of an account executive through the secondary market.

Accepted Answer

A) private 
B) public 
C) general 
D) institutional 
E) securities 
A) private 
B) public 
C) general 
D) institutional 
E) securities

Question 19

Dividends remain with the stock until

Accepted Answer

A) five days after the date of record. 
B) two business days after the date of record. 
C) five days before the date of record. 
D) two business days before the date of record. 
E) five days before the actual payment date. 
A) five days after the date of record. 
B) two business days after the date of record. 
C) five days before the date of record. 
D) two business days before the date of record. 
E) five days before the actual payment date.

Question 20

A stock that is issued by a corporation that has a large amount of capitalization is called a(n) ____________ stock.

Accepted Answer

A) small-cap 
B) medium-cap 
C) large-cap 
D) unlimited-cap 
E) giant-cap 
A) small-cap 
B) medium-cap 
C) large-cap 
D) unlimited-cap 
E) giant-cap

The Toronto Stock Exchange is what type of market

Convertible preferred stock may be exchanged, at the shareholder's option, for a specified number of shares of common stock.

A request that an order be executed at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

A stock that remains stable during declines in the economy is called a(n) ____________ stock.

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

A speculative technique whereby an investor borrows part of the money needed to buy a particular stock.

Marianne Walsh bought XYZ Corporation stocks for $26 a share at the beginning of 2019.At year-end, she received a dividend of $1.75 per share and then sold the stock for $30.50 a share.What was Marianne's annual shareholder return on the investment?

The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.

It is common for professional advisory services like SEDAR, Moody's, Standard & Poor's, and Value Line to charge for more detailed financial information than provided on other Internet Web sites.

An order to buy or sell a security that lets the broker decide when to execute the transaction and at what price is called a ____________ order.

Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?

A request that a stock be bought or sold at the current market price is called a ____________ order.

Dividend payments on common stock are guaranteed, but the amount is determined by the board of directors.

Which of the following is not a true statement?

What is the smallest sector of the Toronto Stock Exchange (of those listed)?

Cumulative preferred stocks are stocks with unpaid dividends that accumulate and must be paid before any cash dividend is paid to the common shareholders.

What is the total profit from shares that your purchased for $33 each plus a commission of $9, and then sold the shares for $44 each 2 years later minus a commission of $15.

Because Xerox is a ____________ corporation, an investor can purchase stock with the help of an account executive through the secondary market.

Dividends remain with the stock until

A stock that is issued by a corporation that has a large amount of capitalization is called a(n) ____________ stock.

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

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Exam 11: Investing in Stocks

The Toronto Stock Exchange is what type of market

Convertible preferred stock may be exchanged, at the shareholder's option, for a specified number of shares of common stock.

A request that an order be executed at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

A stock that remains stable during declines in the economy is called a(n) ____________ stock.

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

A speculative technique whereby an investor borrows part of the money needed to buy a particular stock.

Marianne Walsh bought XYZ Corporation stocks for $26 a share at the beginning of 2019.At year-end, she received a dividend of $1.75 per share and then sold the stock for $30.50 a share.What was Marianne's annual shareholder return on the investment?

The price-earnings ratio is not affected by an increase or decrease in the firm's earnings.

It is common for professional advisory services like SEDAR, Moody's, Standard & Poor's, and Value Line to charge for more detailed financial information than provided on other Internet Web sites.

An order to buy or sell a security that lets the broker decide when to execute the transaction and at what price is called a ____________ order.

Jamie Presner purchased 100 shares of Bank of Montreal for $86.00 Jamie also paid $50 commission.What was the total purchase price for this transaction?

A request that a stock be bought or sold at the current market price is called a ____________ order.

Dividend payments on common stock are guaranteed, but the amount is determined by the board of directors.

Which of the following is not a true statement?

What is the smallest sector of the Toronto Stock Exchange (of those listed)?

Cumulative preferred stocks are stocks with unpaid dividends that accumulate and must be paid before any cash dividend is paid to the common shareholders.

What is the total profit from shares that your purchased for $33 each plus a commission of $9, and then sold the shares for $44 each 2 years later minus a commission of $15.

Because Xerox is a ____________ corporation, an investor can purchase stock with the help of an account executive through the secondary market.

Dividends remain with the stock until

A stock that is issued by a corporation that has a large amount of capitalization is called a(n) ____________ stock.

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