Question 1

_____ is a term used to describe a situation when stocks are trading at prices above their actual worth.

Accepted Answer

A) inflated corporate earnings. 
B) a low unemployment rate. 
C) changes in government regulation. 
D) stock market bubble. 
E) economic turmoil. 
A) inflated corporate earnings. 
B) a low unemployment rate. 
C) changes in government regulation. 
D) stock market bubble. 
E) economic turmoil.

Question 2

Lindsey Holt owns stock in the Galloway Gems Company.She knows in advance that the dividend on this stock is a $1.50 per share..Given this,you know for sure that she purchased which type of stock?

Accepted Answer

A) Preferred 
B) Common 
C) Blue chip 
D) Growth 
E) Penny 
A) Preferred 
B) Common 
C) Blue chip 
D) Growth 
E) Penny

Question 3

ABC Corporation has assets that total $12 million and liabilities that total $4 million.It also has 500,000 shares of stock outstanding.What is the ABC's book value per share?

Accepted Answer

A) $32 
B) $24 
C) $16 
D) $8 
E) $0 
A) $32 
B) $24 
C) $16 
D) $8 
E) $0

Question 4

Dividends remain with the stock until:

Accepted Answer

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

Question 5

Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $48 a share and pays $1.60 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

Accepted Answer

A) 2.5 percent 
B) 7.4 percent 
C) 3.3 percent 
D) 30.0 percent 
E) 40.0 percent. 
A) 2.5 percent 
B) 7.4 percent 
C) 3.3 percent 
D) 30.0 percent 
E) 40.0 percent.

Question 6

An order to sell a particular stock 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 7

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.4.If the stock market increases in value by 10 percent,what is the expected increase in value for the World-Wide Productions stock?

Accepted Answer

A) 12 percent 
B) 20 percent 
C) 24 percent 
D) 48 percent 
E) 14 percent 
A) 12 percent 
B) 20 percent 
C) 24 percent 
D) 48 percent 
E) 14 percent

Question 8

To finance their business activities,many corporations prefer selling common stock because:

Accepted Answer

A) it does not have to be repaid until 10 to 15 years after it has been issued. 
B) interest payments to stockholders are lower than interest paid to a bank. 
C) common shareholders have no voting rights. 
D) interest paid to stockholders is tax deductible. 
E) the money obtained from stockholders does not have to be repaid. 
A) it does not have to be repaid until 10 to 15 years after it has been issued. 
B) interest payments to stockholders are lower than interest paid to a bank. 
C) common shareholders have no voting rights. 
D) interest paid to stockholders is tax deductible. 
E) the money obtained from stockholders does not have to be repaid.

Question 9

Which one of the following is a true statement?

Accepted Answer

A) When choosing a stock advisory service that charges fees for their investment advice, the quality of the information is always excellent. 
B) Morningstar's Investors Service only provides information about bonds. 
C) Value Line provides information about bonds and mutual funds, but not common stocks. 
D) The information provided by investors' services consists of simple alphabetical listings only. 
E) Online computer services may be used to research companies and to obtain current stock prices. 
A) When choosing a stock advisory service that charges fees for their investment advice, the quality of the information is always excellent. 
B) Morningstar's Investors Service only provides information about bonds. 
C) Value Line provides information about bonds and mutual funds, but not common stocks. 
D) The information provided by investors' services consists of simple alphabetical listings only. 
E) Online computer services may be used to research companies and to obtain current stock prices.

Question 10

Mellon Manufacturing has after-tax income of $3 million.It also has 2 million shares of stock outstanding.What is the corporation's earnings per share?

Accepted Answer

A) $3.00 
B) $2.00 
C) $1.50 
D) $0.67 
E) $0.75 
A) $3.00 
B) $2.00 
C) $1.50 
D) $0.67 
E) $0.75

Question 11

To calculate dividend yield,the annual dividend amount per share is divided by the _______ per share.

Accepted Answer

A) current stock price 
B) stock's original issue value 
C) current earnings 
D) current book value 
E) current sales revenue 
A) current stock price 
B) stock's original issue value 
C) current earnings 
D) current book value 
E) current sales revenue

Question 12

George Clancy wants to diversify his portfolio by adding a stock that has a value which moves in direct relation to the business cycle.What type of stock is George thinking about adding to his portfolio?

Accepted Answer

A) Defensive stock 
B) Cyclical stock 
C) Small-cap stock 
D) Blue chip stock 
E) Growth stock 
A) Defensive stock 
B) Cyclical stock 
C) Small-cap stock 
D) Blue chip stock 
E) Growth stock

Question 13

If a stock has a 2-for-1 split:

Accepted Answer

A) the value of the stock is guaranteed to increase. 
B) the value of the stock is guaranteed to decrease. 
C) total market capitalization increases. 
D) total market capitalization decreases. 
E) total market capitalization does not change. 
A) the value of the stock is guaranteed to increase. 
B) the value of the stock is guaranteed to decrease. 
C) total market capitalization increases. 
D) total market capitalization decreases. 
E) total market capitalization does not change.

Question 14

The stock exchange known to trade stock for innovative,forward-looking growth companies is the:

Accepted Answer

A) NYSE. 
B) NASDAQ. 
C) American Stock exchange. 
D) S & P 100. 
E) STSE. 
A) NYSE. 
B) NASDAQ. 
C) American Stock exchange. 
D) S & P 100. 
E) STSE.

Question 15

Since the end of World War II,stocks have returned on average close to 10 percent a year.

Accepted Answer

A) True 
 B)False

Question 16

The dividend yield for a stock investment is calculated by dividing:

Accepted Answer

A) the annual dividend amount per share by the investment's past price per share. 
B) the annual dividend amount per share by the investment's current price per share. 
C) the annual dividend amount per share by the investment's future price per share. 
D) the investment's past price per share by the annual dividend amount per share. 
E) the investment's current price per share by the annual dividend amount per share. 
A) the annual dividend amount per share by the investment's past price per share. 
B) the annual dividend amount per share by the investment's current price per share. 
C) the annual dividend amount per share by the investment's future price per share. 
D) the investment's past price per share by the annual dividend amount per share. 
E) the investment's current price per share by the annual dividend amount per share.

Question 17

When investors purchase stock on margin,they borrow stock from a stockbroker or brokerage firm.

Accepted Answer

A) True 
 B)False

Question 18

Which order is executed if and when the specified price or better is reached and all other previously received orders have been fulfilled?

Accepted Answer

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

Question 19

A call option gives the purchaser 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 20

A very safe investment that generally attracts conservative investors is called a ____________ stock.

Accepted Answer

A) penny 
B) cyclical 
C) growth 
D) small cap 
E) blue chip 
A) penny 
B) cyclical 
C) growth 
D) small cap 
E) blue chip

_____ is a term used to describe a situation when stocks are trading at prices above their actual worth.

Lindsey Holt owns stock in the Galloway Gems Company.She knows in advance that the dividend on this stock is a $1.50 per share..Given this,you know for sure that she purchased which type of stock?

ABC Corporation has assets that total $12 million and liabilities that total $4 million.It also has 500,000 shares of stock outstanding.What is the ABC's book value per share?

Dividends remain with the stock until:

Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $48 a share and pays $1.60 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.4.If the stock market increases in value by 10 percent,what is the expected increase in value for the World-Wide Productions stock?

To finance their business activities,many corporations prefer selling common stock because:

Which one of the following is a true statement?

Mellon Manufacturing has after-tax income of $3 million.It also has 2 million shares of stock outstanding.What is the corporation's earnings per share?

To calculate dividend yield,the annual dividend amount per share is divided by the _______ per share.

George Clancy wants to diversify his portfolio by adding a stock that has a value which moves in direct relation to the business cycle.What type of stock is George thinking about adding to his portfolio?

If a stock has a 2-for-1 split:

The stock exchange known to trade stock for innovative,forward-looking growth companies is the:

Since the end of World War II,stocks have returned on average close to 10 percent a year.

The dividend yield for a stock investment is calculated by dividing:

When investors purchase stock on margin,they borrow stock from a stockbroker or brokerage firm.

Which order is executed if and when the specified price or better is reached and all other previously received orders have been fulfilled?

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

A very safe investment that generally attracts conservative investors is called a ____________ stock.

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

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Exam 14: Investing in Stock

_____ is a term used to describe a situation when stocks are trading at prices above their actual worth.

Lindsey Holt owns stock in the Galloway Gems Company.She knows in advance that the dividend on this stock is a $1.50 per share..Given this,you know for sure that she purchased which type of stock?

ABC Corporation has assets that total $12 million and liabilities that total $4 million.It also has 500,000 shares of stock outstanding.What is the ABC's book value per share?

Dividends remain with the stock until:

Becky Martinez paid $65 a share for stock in GBX Corporation.The stock has a current market value of $48 a share and pays $1.60 a year in dividends per share.What is the dividend yield rounded to the nearest tenth of a percent?

An order to sell a particular stock at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.4.If the stock market increases in value by 10 percent,what is the expected increase in value for the World-Wide Productions stock?

To finance their business activities,many corporations prefer selling common stock because:

Which one of the following is a true statement?

Mellon Manufacturing has after-tax income of $3 million.It also has 2 million shares of stock outstanding.What is the corporation's earnings per share?

To calculate dividend yield,the annual dividend amount per share is divided by the _______ per share.

George Clancy wants to diversify his portfolio by adding a stock that has a value which moves in direct relation to the business cycle.What type of stock is George thinking about adding to his portfolio?

If a stock has a 2-for-1 split:

The stock exchange known to trade stock for innovative,forward-looking growth companies is the:

Since the end of World War II,stocks have returned on average close to 10 percent a year.

The dividend yield for a stock investment is calculated by dividing:

When investors purchase stock on margin,they borrow stock from a stockbroker or brokerage firm.

Which order is executed if and when the specified price or better is reached and all other previously received orders have been fulfilled?

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

A very safe investment that generally attracts conservative investors is called a ____________ stock.

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