Exam 14: Investing in Stock

On May 20,2015,Tony Blackman bought 100 shares of stock from XYZ Corporation.The quarterly dividend is $1.25 per share and the record date is May 25.How much will Tony receive for this quarterly dividend?

ABC Corporation holds its annual meeting in April.Maxine Star,who owns stock in the company,cannot attend the meeting.She can vote by:

The beta for the S&P 500 is:

Dollar cost averaging helps investors avoid the pitfall of buying high and selling low.

The federal government requires corporations selling new issues of securities to disclose information about itself in a prospectus.Which of the following must be disclosed?

Ms.Hart's stock club uses numerous charts that plot past price movements and other market averages to predict the future direction for the market as a whole.Her club relies on _______ analysis to determine stock selections.

Today most investors either trade _____ or telephone their account executives.

An investment theory based on the assumption that stock price movements are purely random is called the ____________ theory.

Sean Rouse owns shares of common stock in Stowaway Transportation Company.The company is getting ready to pay a dividend.Sean knows he must be registered on the corporation's books on the _______ date in order to receive the dividend.

Stocks issued by large corporations in mature industries often have high P-E ratios.

Which one of the following statements is true?

Stock dividends are determined by the:

Anthony Edwards wants to diversify his portfolio by adding a stock that maintains stable earnings when the economy declines.What type of stock does Anthony want to add to his portfolio?

The Arnold Fertilizer Company's stock is selling for $55 in the market and its earnings per share is $5.The company is projected to grow at a rate of 22% over the next year.What is this company's price/earnings to growth ratio?

A stock issued by a corporation that has a market capitalization of between $2 and $10 billion is called a ____________ stock.

Amy Farmer just received a legal form in the mail from a firm in which she owns stock.This form lists the issues to be decided at the annual stockholders' meeting and asks her to give written permission for someone else to vote for her if she cannot attend.What form has she received in the mail?

A large cap stock is a stock issued by a corporation that has capitalization of more than $10 billion.

A limit order is a request to buy or sell stock at a specified price or better.

Initial public offerings are a ___________ investment.

Mary Smith purchased 200 shares of Johnson electronics four years ago at $30.00 each.She paid a $30 commission on this transaction.She has decided to sell these shares at $50.00 each and will incur a $25 commission on this sale.What is the amount of her capital gain?