Question 1

When a corporation exchanges stock for a specified amount of money, it is exercising its ____________ feature.

Accepted Answer

A) participating 
B) cumulative 
C) convertible 
D) call 
E) termination 
A) participating 
B) cumulative 
C) convertible 
D) call 
E) termination

Question 2

Capitalization is ___________

Accepted Answer

A) issued by a company that has a capitalization of $150 million or less. 
B) issued by a corporation that has the potential to earn profits above the average profits of all firms in the economy. 
C) the total amount of securities-stocks and bonds-issued by a corporation. 
D) follows the business cycle of advances and declines in the economy. 
E) A safe investment that generally attracts conservative investors 
A) issued by a company that has a capitalization of $150 million or less. 
B) issued by a corporation that has the potential to earn profits above the average profits of all firms in the economy. 
C) the total amount of securities-stocks and bonds-issued by a corporation. 
D) follows the business cycle of advances and declines in the economy. 
E) A safe investment that generally attracts conservative investors

Question 3

What is the largest sector of the Toronto Stock Exchange?

Accepted Answer

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

Question 4

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.

Accepted Answer

A) cumulative preferred 
B) convertible preferred 
C) participating preferred 
D) common 
E) callable preferred 
A) cumulative preferred 
B) convertible preferred 
C) participating preferred 
D) common 
E) callable preferred

Question 5

Today, it is possible for investors to access a corporation's home page in order to evaluate an investment in its stock.

Accepted Answer

A) True 
 B)False

Question 6

A securities exchange is a marketplace where member brokers who are representing investors meet to buy and sell securities.

Accepted Answer

A) True 
 B)False

Question 7

If the board of directors approves a two for one stock split, an investor who owns 200 shares before the split owns ____________ shares after the split.

Accepted Answer

A) 75 
B) 200 
C) 225 
D) 400 
E) 450 
A) 75 
B) 200 
C) 225 
D) 400 
E) 450

Question 8

A stock split is a procedure in which the shares of stock owned by existing shareholders are divided into a larger number of shares.

Accepted Answer

A) True 
 B)False

Question 9

Typically, growth companies pay out ____________ of their earnings in dividends to their stockholders.

Accepted Answer

A) over 95 percent 
B) between 65 percent and 75 percent 
C) between 50 and 65 percent 
D) between 30 and 50 percent 
E) less than 30 percent 
A) over 95 percent 
B) between 65 percent and 75 percent 
C) between 50 and 65 percent 
D) between 30 and 50 percent 
E) less than 30 percent

Question 10

A call option gives the owner the right to sell 100 shares of a stock at a guaranteed price before a definite expiration date.

Accepted Answer

A) True 
 B)False

Question 11

A market for existing financial securities that are currently traded between investors is called the ____________ market.

Accepted Answer

A) technical 
B) fundamental 
C) efficient 
D) secondary 
E) primary 
A) technical 
B) fundamental 
C) efficient 
D) secondary 
E) primary

Question 12

A public corporation is a corporation whose stock is owned by relatively few people and is not traded openly in the stock market.

Accepted Answer

A) True 
 B)False

Question 13

When investors are optimistic about the overall economy and buy stocks, it is known as a(n) ____________ market.

Accepted Answer

A) book 
B) bear 
C) bull 
D) equity 
E) declining 
A) book 
B) bear 
C) bull 
D) equity 
E) declining

Question 14

Devin Scott is looking for an investment that will provide a predictable source of income.With this goal in mind, which of the following industry groups would normally be classified as an industry to invest in for income?

Accepted Answer

A) public utilities 
B) electronics 
C) automobile manufacturing 
D) steel manufacturing 
E) paper manufacturing 
A) public utilities 
B) electronics 
C) automobile manufacturing 
D) steel manufacturing 
E) paper manufacturing

Question 15

If the board of directors approves a three for one stock split, an investor who owns 300 shares before the split owns ____________ shares after the split.

Accepted Answer

A) 100 
B) 200 
C) 300 
D) 900 
E) 1,800 
A) 100 
B) 200 
C) 300 
D) 900 
E) 1,800

Question 16

A market in which an investor purchases financial securities (via an investment bank or other representative from the issuer of those securities is called the ____________ market.

Accepted Answer

A) technical 
B) fundamental 
C) efficient 
D) secondary 
E) primary 
A) technical 
B) fundamental 
C) efficient 
D) secondary 
E) primary

Question 17

A blue-chip stock is too speculative for most investors.

Accepted Answer

A) True 
 B)False

Question 18

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

Accepted Answer

A) True 
 B)False

Question 19

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

Accepted Answer

A) True 
 B)False

Question 20

If a corporation has more than one stock issue, the common stock is always listed first.

Accepted Answer

A) True 
 B)False

When a corporation exchanges stock for a specified amount of money, it is exercising its ____________ feature.

Capitalization is ___________

What is the largest sector of the Toronto Stock Exchange?

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.

Today, it is possible for investors to access a corporation's home page in order to evaluate an investment in its stock.

A securities exchange is a marketplace where member brokers who are representing investors meet to buy and sell securities.

If the board of directors approves a two for one stock split, an investor who owns 200 shares before the split owns ____________ shares after the split.

A stock split is a procedure in which the shares of stock owned by existing shareholders are divided into a larger number of shares.

Typically, growth companies pay out ____________ of their earnings in dividends to their stockholders.

A call option gives the owner the right to sell 100 shares of a stock at a guaranteed price before a definite expiration date.

A market for existing financial securities that are currently traded between investors is called the ____________ market.

A public corporation is a corporation whose stock is owned by relatively few people and is not traded openly in the stock market.

When investors are optimistic about the overall economy and buy stocks, it is known as a(n) ____________ market.

Devin Scott is looking for an investment that will provide a predictable source of income.With this goal in mind, which of the following industry groups would normally be classified as an industry to invest in for income?

If the board of directors approves a three for one stock split, an investor who owns 300 shares before the split owns ____________ shares after the split.

A market in which an investor purchases financial securities (via an investment bank or other representative from the issuer of those securities is called the ____________ market.

A blue-chip stock is too speculative for most investors.

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

If a corporation has more than one stock issue, the common stock is always listed first.

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

When a corporation exchanges stock for a specified amount of money, it is exercising its ____________ feature.

Capitalization is ___________

What is the largest sector of the Toronto Stock Exchange?

The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.

Today, it is possible for investors to access a corporation's home page in order to evaluate an investment in its stock.

A securities exchange is a marketplace where member brokers who are representing investors meet to buy and sell securities.

If the board of directors approves a two for one stock split, an investor who owns 200 shares before the split owns ____________ shares after the split.

A stock split is a procedure in which the shares of stock owned by existing shareholders are divided into a larger number of shares.

Typically, growth companies pay out ____________ of their earnings in dividends to their stockholders.

A call option gives the owner the right to sell 100 shares of a stock at a guaranteed price before a definite expiration date.

A market for existing financial securities that are currently traded between investors is called the ____________ market.

A public corporation is a corporation whose stock is owned by relatively few people and is not traded openly in the stock market.

When investors are optimistic about the overall economy and buy stocks, it is known as a(n) ____________ market.

Devin Scott is looking for an investment that will provide a predictable source of income.With this goal in mind, which of the following industry groups would normally be classified as an industry to invest in for income?

If the board of directors approves a three for one stock split, an investor who owns 300 shares before the split owns ____________ shares after the split.

A market in which an investor purchases financial securities (via an investment bank or other representative from the issuer of those securities is called the ____________ market.

A blue-chip stock is too speculative for most investors.

A proxy is a legal form that lists the issues to be decided at a stockholders' meeting and requests that stockholders transfer their voting rights to some individual or individuals.

The most important priority that an investor in common stock enjoys is receiving cash dividends before preferred stockholders are paid any cash dividends.

If a corporation has more than one stock issue, the common stock is always listed first.

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