Question 1

Doug Baker bought Toronto Dominion stocks for $50 a share one year ago.He sold the stock a year later for $55.50 a share.What was John's capital gains yield?

Accepted Answer

A) 3 percent 
B) 3.50 percent 
C) 9.9 percent 
D) 11 percent 
E) 111 percent 
A) 3 percent 
B) 3.50 percent 
C) 9.9 percent 
D) 11 percent 
E) 111 percent

Question 2

To calculate the annual dividend yield, the annual dividend is divided by the stock's

Accepted Answer

A) current price. 
B) historical average price. 
C) future price. 
D) beginning-of-year price. 
E) end-of-year price. 
A) current price. 
B) historical average price. 
C) future price. 
D) beginning-of-year price. 
E) end-of-year price.

Question 3

By using the Canada.Com Finance Web site, an investor can find information on all of the following except

Accepted Answer

A) inside information. 
B) the corporation's stock symbol. 
C) current market values. 
D) research information. 
E) historical market quotes. 
A) inside information. 
B) the corporation's stock symbol. 
C) current market values. 
D) research information. 
E) historical market quotes.

Question 4

Which of the following statements is not true?

Accepted Answer

A) Corporations are required by law to have two stockholder meetings each year. 
B) Stockholders must approve any amendment of the corporate charter. 
C) Stockholders must approve the sale of certain corporate assets. 
D) Corporations are required by law to distribute annual reports. 
E) Stockholders may vote in person or by proxy. 
A) Corporations are required by law to have two stockholder meetings each year. 
B) Stockholders must approve any amendment of the corporate charter. 
C) Stockholders must approve the sale of certain corporate assets. 
D) Corporations are required by law to distribute annual reports. 
E) Stockholders may vote in person or by proxy.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) remains unchanged. 
B) increases in value. 
C) decreases in value. 
D) is guaranteed to go up within a short period of time. 
E) always drops to a third of its former value. 
A) remains unchanged. 
B) increases in value. 
C) decreases in value. 
D) is guaranteed to go up within a short period of time. 
E) always drops to a third of its former value.

Question 7

Ammar purchased 100 shares of Northern Bank at $55 dollars a share in January of 2004.The shares subsequently split two-for-one on December 31, 2004 after paying an annual dividend of $1.00 per share.If Ammar sells all of his shares on the first trading day in January 2005 for $30 each, what has been his return on investment?

Accepted Answer

A) Zero 
B) 9.1% 
C) 10.0% 
D) 10.9% 
E) 15% 
A) Zero 
B) 9.1% 
C) 10.0% 
D) 10.9% 
E) 15%

Question 8

A public corporation is a corporation whose stocks are traded openly in stock markets and may be purchased by individuals.

Accepted Answer

A) True 
 B)False

Question 9

Preferred stocks are often referred to as "middle" investments.

Accepted Answer

A) True 
 B)False

Question 10

Assume that you purchased 200 shares of C-Mac Industries stock for $110 a share, that you received an annual dividend of $4.00 a share, and that you then sold your stock for $130 a share at the end of one year.What is the total profit on your investment? (Ignore commission amounts for this question.)

Accepted Answer

A) $200 
B) $400 
C) $4,800 
D) $800 
E) $2,200 
A) $200 
B) $400 
C) $4,800 
D) $800 
E) $2,200

Question 11

MasterCracked Manufacturing has after-tax profits that total $725,000.If the firm has 250,000 shares, what is the amount of earnings per share?

Accepted Answer

A) $1.25 
B) $2 
C) $2.90 
D) $2.50 
E) It is impossible to calculate earnings per share with this information. 
A) $1.25 
B) $2 
C) $2.90 
D) $2.50 
E) It is impossible to calculate earnings per share with this information.

Question 12

Corporations issue preferred stock because it provides an alternative to financing through corporate bonds or common stock.

Accepted Answer

A) True 
 B)False

Question 13

Joanne Blower owns 200 shares of Corel Corporation stock.She purchased the stock for $22 a share.She sold her stock for $28 a share.The commissions required to buy and sell her stock totaled $180.Assuming that she received no dividends during the time she owned the stock, what is her total profit from this transaction?

Accepted Answer

A) $180 
B) $780 
C) $1,380 
D) $1,020 
E) $1,200 
A) $180 
B) $780 
C) $1,380 
D) $1,020 
E) $1,200

Question 14

Assume the beta for the stock market in general is 1.0 and that the beta for World-Wide Television Productions is 2.4.Which of these statements is not true?

Accepted Answer

A) The average stock is less risky than World-Wide Television Productions stock. 
B) World-Wide Television Productions stock is more risky than the average stock. 
C) Beta compares the risk of a specific stock issue with the risk of the stock market in general. 
D) Most stocks have betas between 0.5 and 2. 
E) World-Wide Television Productions stock is less risky than the average stock. 
A) The average stock is less risky than World-Wide Television Productions stock. 
B) World-Wide Television Productions stock is more risky than the average stock. 
C) Beta compares the risk of a specific stock issue with the risk of the stock market in general. 
D) Most stocks have betas between 0.5 and 2. 
E) World-Wide Television Productions stock is less risky than the average stock.

Question 15

A long-term technique used by investors who purchase stocks and hold onto them for a number of years

Accepted Answer

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

Question 16

A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.

Accepted Answer

A) True 
 B)False

Question 17

Which of these is not a sign for potential online investment scams?

Accepted Answer

A) high pressure tactics to buy from people you do not know 
B) promises of high profits and sales relating to products of a new company 
C) large-cap companies that pay a generous executive salary 
D) reverse splits 
E) small-cap companies investing in projects unrelated to their businesses 
A) high pressure tactics to buy from people you do not know 
B) promises of high profits and sales relating to products of a new company 
C) large-cap companies that pay a generous executive salary 
D) reverse splits 
E) small-cap companies investing in projects unrelated to their businesses

Question 18

Dollar-cost averaging enables investors to avoid the problem of buying high and selling low.

Accepted Answer

A) True 
 B)False

Question 19

A stock that pays higher than average dividends is called an income stock.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a true statement?

Accepted Answer

A) An investment bank is a financial firm that assists organizations in raising funds. 
B) A large corporation often uses an investment bank to sell and distribute a new stock issue. 
C) Analysts for the investment bank examine the corporation's financial position to determine whether the new stock issue is financially sound. 
D) If the investment bank is satisfied that the new stock issue is a good risk, it will buy the stock and hold it for at least one year. 
E) The investment bank resells a new stock issue to its customers-commercial banks, insurance companies, pension funds, mutual funds, and the general public. 
A) An investment bank is a financial firm that assists organizations in raising funds. 
B) A large corporation often uses an investment bank to sell and distribute a new stock issue. 
C) Analysts for the investment bank examine the corporation's financial position to determine whether the new stock issue is financially sound. 
D) If the investment bank is satisfied that the new stock issue is a good risk, it will buy the stock and hold it for at least one year. 
E) The investment bank resells a new stock issue to its customers-commercial banks, insurance companies, pension funds, mutual funds, and the general public.

Doug Baker bought Toronto Dominion stocks for $50 a share one year ago.He sold the stock a year later for $55.50 a share.What was John's capital gains yield?

To calculate the annual dividend yield, the annual dividend is divided by the stock's

By using the Canada.Com Finance Web site, an investor can find information on all of the following except

Which of the following statements is not true?

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

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

A public corporation is a corporation whose stocks are traded openly in stock markets and may be purchased by individuals.

Preferred stocks are often referred to as "middle" investments.

MasterCracked Manufacturing has after-tax profits that total $725,000.If the firm has 250,000 shares, what is the amount of earnings per share?

Corporations issue preferred stock because it provides an alternative to financing through corporate bonds or common stock.

Assume the beta for the stock market in general is 1.0 and that the beta for World-Wide Television Productions is 2.4.Which of these statements is not true?

A long-term technique used by investors who purchase stocks and hold onto them for a number of years

A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.

Which of these is not a sign for potential online investment scams?

Dollar-cost averaging enables investors to avoid the problem of buying high and selling low.

A stock that pays higher than average dividends is called an income stock.

Which of the following is not a true statement?

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

Doug Baker bought Toronto Dominion stocks for $50 a share one year ago.He sold the stock a year later for $55.50 a share.What was John's capital gains yield?

To calculate the annual dividend yield, the annual dividend is divided by the stock's

By using the Canada.Com Finance Web site, an investor can find information on all of the following except

Which of the following statements is not true?

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

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

A public corporation is a corporation whose stocks are traded openly in stock markets and may be purchased by individuals.

Preferred stocks are often referred to as "middle" investments.

MasterCracked Manufacturing has after-tax profits that total $725,000.If the firm has 250,000 shares, what is the amount of earnings per share?

Corporations issue preferred stock because it provides an alternative to financing through corporate bonds or common stock.

Assume the beta for the stock market in general is 1.0 and that the beta for World-Wide Television Productions is 2.4.Which of these statements is not true?

A long-term technique used by investors who purchase stocks and hold onto them for a number of years

A stock split is a procedure in which a stockholder's common stock is exchanged for preferred stock.

Which of these is not a sign for potential online investment scams?

Dollar-cost averaging enables investors to avoid the problem of buying high and selling low.

A stock that pays higher than average dividends is called an income stock.

Which of the following is not a true statement?

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