Question 1

Regardless of a stock's classification,a stock is a _____investment because there are no guarantees.

Accepted Answer

A) speculative 
B) conservative 
C) substitute 
D) unwise 
E) sound 
A) speculative 
B) conservative 
C) substitute 
D) unwise 
E) sound

Question 2

What is the primary difference between common stock and preferred stock?

Accepted Answer

The primary difference is that preferred

Question 3

Arnell Johnson bought 200 shares of Black Petroleum Company for $95 per share and paid a commission of $60.He sold the stock five years later for $120 per share and paid $75 commission.While he held the stock,it paid a dividend of $5.50 per share.What was Arnell's total dollar return on this stock?

Accepted Answer

A) $5,000 
B) $4,865 
C) $1,100 
D) $6,100 
E) $5,965 
A) $5,000 
B) $4,865 
C) $1,100 
D) $6,100 
E) $5,965

Question 4

Patsy Banz owns 220 shares of a stock.For the last calendar quarter,the company paid a dividend of $0.47 a share.What is the total amount she received in her dividend check for this quarter?

Accepted Answer

A) $0.47 
B) $47.00 
C) $94.20 
D) $103.40 
E) $25.85 
A) $0.47 
B) $47.00 
C) $94.20 
D) $103.40 
E) $25.85

Question 5

Carol Fisher wants to sell the stock of Hathaway International at the next available price after the market price reaches $50 per share.What type of order should she place?

Accepted Answer

A) Market order 
B) Limit order 
C) Stop order 
D) Discretionary order 
E) Common order 
A) Market order 
B) Limit order 
C) Stop order 
D) Discretionary order 
E) Common order

Question 6

Before a 2-for-1 stock split,Lisa's stock was valued at $50 per share.What is her per share value after the split?

Accepted Answer

A) $25 
B) $50 
C) $100 
D) $125 
E) $150 
A) $25 
B) $50 
C) $100 
D) $125 
E) $150

Question 7

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 total investment amount?

Accepted Answer

A) $3,945 
B) $6,000 
C) $6,030 
D) $9,975 
E) $10,000 
A) $3,945 
B) $6,000 
C) $6,030 
D) $9,975 
E) $10,000

Question 8

Which of the following most likely does not charge a fee for you to access any of their information that may be used to evaluate a stock investment?

Accepted Answer

A) Value Line 
B) Morningstar 
C) Yahoo! Finance 
D) Standard & Poor's 
E) Reuters 
A) Value Line 
B) Morningstar 
C) Yahoo! Finance 
D) Standard & Poor's 
E) Reuters

Question 9

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a:

Accepted Answer

A) annual report. 
B) quarterly report. 
C) accountant's audit report. 
D) prospectus. 
E) stock guide. 
A) annual report. 
B) quarterly report. 
C) accountant's audit report. 
D) prospectus. 
E) stock guide.

Question 10

When choosing a brokerage firm,an investor should consider:

Accepted Answer

A) the amount of the commissions they charge. 
B) how much research information is available. 
C) how much research information costs. 
D) how much help you need when making an investment decision. 
E) ANSE.All of these. 
A) the amount of the commissions they charge. 
B) how much research information is available. 
C) how much research information costs. 
D) how much help you need when making an investment decision. 
E) ANSE.All of these.

Question 11

The annualized holding period yield calculation takes into account the time the investment is held.

Accepted Answer

A) True 
 B)False

Question 12

If the corporation has a bad year,the board of directors generally may vote to:

Accepted Answer

A) sell less stock. 
B) decrease the stock price. 
C) cease selling stock. 
D) omit dividend payments. 
E) increase dividend payments. 
A) sell less stock. 
B) decrease the stock price. 
C) cease selling stock. 
D) omit dividend payments. 
E) increase dividend payments.

Question 13

Jennifer Fritz is thinking about purchasing the stock of the Sunshine Corporation at the current market price.What type of order should she place?

Accepted Answer

A) Market order 
B) Limit order 
C) Stop order 
D) Discretionary order 
E) Common order 
A) Market order 
B) Limit order 
C) Stop order 
D) Discretionary order 
E) Common order

Question 14

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

Accepted Answer

A) True 
 B)False

Question 15

A long-term investment technique that allows investors the option to reinvest cash dividends to purchase stock of the corporation is called:

Accepted Answer

A) a direct investment plan. 
B) a dividend reinvestment plan. 
C) dollar cost averaging. 
D) buy-and-hold. 
E) day trading. 
A) a direct investment plan. 
B) a dividend reinvestment plan. 
C) dollar cost averaging. 
D) buy-and-hold. 
E) day trading.

Question 16

Regarding a stock split,the earnings "pie" before the split is ____size after the split.

Accepted Answer

A) a smaller 
B) a larger 
C) double the 
D) the same 
E) unrelated to the 
A) a smaller 
B) a larger 
C) double the 
D) the same 
E) unrelated to the

Question 17

Common stock dividends are paid out of profits and:

Accepted Answer

A) must be approved by the corporation's board of directors. 
B) are guaranteed to be paid quarterly. 
C) are paid prior to the firm's taxes. 
D) usually paid semi-annually. 
E) equal 100 percent of the firm's annual earnings. 
A) must be approved by the corporation's board of directors. 
B) are guaranteed to be paid quarterly. 
C) are paid prior to the firm's taxes. 
D) usually paid semi-annually. 
E) equal 100 percent of the firm's annual earnings.

Question 18

A long-term investment technique used by investors to purchase stock directly from a corporation without paying a commission to a broker is called:

Accepted Answer

A) dollar cost appreciation. 
B) direct investment plan. 
C) unregulated transaction. 
D) regulated transaction. 
E) over-the-counter transaction. 
A) dollar cost appreciation. 
B) direct investment plan. 
C) unregulated transaction. 
D) regulated transaction. 
E) over-the-counter transaction.

Question 19

Preferred stock is often referred to as a middle investment as it has features similar to both common stock and corporate bonds.

Accepted Answer

A) True 
 B)False

Question 20

After a 2-for-1 stock split:

Accepted Answer

A) earnings per share decrease. 
B) earnings per share increase. 
C) capitalization decreases. 
D) capitalization increases. 
E) dividend yields decrease. 
A) earnings per share decrease. 
B) earnings per share increase. 
C) capitalization decreases. 
D) capitalization increases. 
E) dividend yields decrease.

Regardless of a stock's classification,a stock is a _____investment because there are no guarantees.

What is the primary difference between common stock and preferred stock?

Arnell Johnson bought 200 shares of Black Petroleum Company for $95 per share and paid a commission of $60.He sold the stock five years later for $120 per share and paid $75 commission.While he held the stock,it paid a dividend of $5.50 per share.What was Arnell's total dollar return on this stock?

Patsy Banz owns 220 shares of a stock.For the last calendar quarter,the company paid a dividend of $0.47 a share.What is the total amount she received in her dividend check for this quarter?

Carol Fisher wants to sell the stock of Hathaway International at the next available price after the market price reaches $50 per share.What type of order should she place?

Before a 2-for-1 stock split,Lisa's stock was valued at $50 per share.What is her per share value after the split?

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 total investment amount?

Which of the following most likely does not charge a fee for you to access any of their information that may be used to evaluate a stock investment?

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a:

When choosing a brokerage firm,an investor should consider:

The annualized holding period yield calculation takes into account the time the investment is held.

If the corporation has a bad year,the board of directors generally may vote to:

Jennifer Fritz is thinking about purchasing the stock of the Sunshine Corporation at the current market price.What type of order should she place?

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

A long-term investment technique that allows investors the option to reinvest cash dividends to purchase stock of the corporation is called:

Regarding a stock split,the earnings "pie" before the split is ____size after the split.

Common stock dividends are paid out of profits and:

A long-term investment technique used by investors to purchase stock directly from a corporation without paying a commission to a broker is called:

Preferred stock is often referred to as a middle investment as it has features similar to both common stock and corporate bonds.

After a 2-for-1 stock split:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 14: Investing in Stock

Regardless of a stock's classification,a stock is a _____investment because there are no guarantees.

What is the primary difference between common stock and preferred stock?

Arnell Johnson bought 200 shares of Black Petroleum Company for $95 per share and paid a commission of $60.He sold the stock five years later for $120 per share and paid $75 commission.While he held the stock,it paid a dividend of $5.50 per share.What was Arnell's total dollar return on this stock?

Patsy Banz owns 220 shares of a stock.For the last calendar quarter,the company paid a dividend of $0.47 a share.What is the total amount she received in her dividend check for this quarter?

Carol Fisher wants to sell the stock of Hathaway International at the next available price after the market price reaches $50 per share.What type of order should she place?

Before a 2-for-1 stock split,Lisa's stock was valued at $50 per share.What is her per share value after the split?

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 total investment amount?

Which of the following most likely does not charge a fee for you to access any of their information that may be used to evaluate a stock investment?

The federal government requires that a corporation selling a new issue of securities must disclose information about the company and its finances in a:

When choosing a brokerage firm,an investor should consider:

The annualized holding period yield calculation takes into account the time the investment is held.

If the corporation has a bad year,the board of directors generally may vote to:

Jennifer Fritz is thinking about purchasing the stock of the Sunshine Corporation at the current market price.What type of order should she place?

By using the internet,it is possible to find market price quotations,but more detailed financial information about a corporation is unavailable to the average investor.

A long-term investment technique that allows investors the option to reinvest cash dividends to purchase stock of the corporation is called:

Regarding a stock split,the earnings "pie" before the split is ____size after the split.

Common stock dividends are paid out of profits and:

A long-term investment technique used by investors to purchase stock directly from a corporation without paying a commission to a broker is called:

Preferred stock is often referred to as a middle investment as it has features similar to both common stock and corporate bonds.

After a 2-for-1 stock split:

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters