Question 1

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 2

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 3

An investment theory based on the assumption that a stock's market value is determined by the forces of supply and demand in the stock market as a whole is called the ____________ theory.

Accepted Answer

A) fundamental 
B) technical analysis 
C) efficient market 
D) primary 
E) market 
A) fundamental 
B) technical analysis 
C) efficient market 
D) primary 
E) market

Question 4

Initial public offerings (IPO's)are a ___________ investment.

Accepted Answer

A) guaranteed 
B) speculative 
C) safe 
D) conservative 
E) blue chip 
A) guaranteed 
B) speculative 
C) safe 
D) conservative 
E) blue chip

Question 5

The total return on a stock is equal to the current market value of the stock minus the investor's purchase price.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Since 1926,stocks as measured by the Standard & Poor's 500 Index have returned on average about 10 percent a year.

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A) record 
B) ex-dividend 
C) payment date 
D) declaration 
E) stockholders' meeting 
A) record 
B) ex-dividend 
C) payment date 
D) declaration 
E) stockholders' meeting

Question 9

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

Accepted Answer

The answer of What is the primary difference between common...

Question 10

A request that an order be executed 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 11

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) Mergent'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) Mergent'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 12

On May 24,2010,Kurt Rogers 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 Kurt receive for this quarterly dividend?

Accepted Answer

A) $0.00 
B) $1.25 
C) $12.50 
D) $125.00 
E) $0.13 
A) $0.00 
B) $1.25 
C) $12.50 
D) $125.00 
E) $0.13

Question 13

A request that a stock be bought or sold at 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 14

A stock that follows the business cycle of advances and declines in the economy is called a(n)____________ stock.

Accepted Answer

A) defensive 
B) cyclical 
C) growth 
D) income 
E) blue-chip 
A) defensive 
B) cyclical 
C) growth 
D) income 
E) blue-chip

Question 15

An increase in a corporation's earnings per share is a healthy sign.

Accepted Answer

A) True 
 B)False

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

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

Question 18

When a stock splits two-for-one,you should expect the price per share to:

Accepted Answer

A) decrease to half its pre-split price. 
B) decrease in value by 75 percent or more. 
C) remain unchanged. 
D) increase to more than twice its pre-split price. 
E) increase to twice its pre-split pricE. 
A) decrease to half its pre-split price. 
B) decrease in value by 75 percent or more. 
C) remain unchanged. 
D) increase to more than twice its pre-split price. 
E) increase to twice its pre-split pricE.

Question 19

Which one of the following statements is true?

Accepted Answer

A) It is possible to obtain financial information about a corporation that issues stock by using the Internet. 
B) While it is possible to obtain information about a company by accessing the Internet,the information is usually out of date. 
C) You can use an Internet search engine to only access a company's price information. 
D) Corporations have web pages but do not provide any financial information on them. 
E) By using the Yahoo! Finance web site,investors can access financial information only about the economy as a wholE. 
A) It is possible to obtain financial information about a corporation that issues stock by using the Internet. 
B) While it is possible to obtain information about a company by accessing the Internet,the information is usually out of date. 
C) You can use an Internet search engine to only access a company's price information. 
D) Corporations have web pages but do not provide any financial information on them. 
E) By using the Yahoo! Finance web site,investors can access financial information only about the economy as a wholE.

Question 20

Convertible preferred stock may be exchanged,at the corporation's option,for a specified number of shares of common stock.

Accepted Answer

A) True 
 B)False

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

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?

An investment theory based on the assumption that a stock's market value is determined by the forces of supply and demand in the stock market as a whole is called the ____________ theory.

Initial public offerings (IPO's)are a ___________ investment.

The total return on a stock is equal to the current market value of the stock minus the investor's purchase price.

Dividends remain with the stock until:

Since 1926,stocks as measured by the Standard & Poor's 500 Index have returned on average about 10 percent a year.

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.

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

A request that an order be executed at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

Which one of the following is a true statement?

On May 24,2010,Kurt Rogers 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 Kurt receive for this quarterly dividend?

A request that a stock be bought or sold at a specified price is called a ____________ order.

A stock that follows the business cycle of advances and declines in the economy is called a(n)____________ stock.

An increase in a corporation's earnings per share is a healthy sign.

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.

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

When a stock splits two-for-one,you should expect the price per share to:

Which one of the following statements is true?

Convertible preferred stock may be exchanged,at the corporation's option,for a specified number of shares of common 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 Stocks

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

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?

An investment theory based on the assumption that a stock's market value is determined by the forces of supply and demand in the stock market as a whole is called the ____________ theory.

Initial public offerings (IPO's)are a ___________ investment.

The total return on a stock is equal to the current market value of the stock minus the investor's purchase price.

Dividends remain with the stock until:

Since 1926,stocks as measured by the Standard & Poor's 500 Index have returned on average about 10 percent a year.

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.

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

A request that an order be executed at the next available opportunity after the market price of the stock reaches a specified price is called a ____________ order.

Which one of the following is a true statement?

On May 24,2010,Kurt Rogers 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 Kurt receive for this quarterly dividend?

A request that a stock be bought or sold at a specified price is called a ____________ order.

A stock that follows the business cycle of advances and declines in the economy is called a(n)____________ stock.

An increase in a corporation's earnings per share is a healthy sign.

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.

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

When a stock splits two-for-one,you should expect the price per share to:

Which one of the following statements is true?

Convertible preferred stock may be exchanged,at the corporation's option,for a specified number of shares of common 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