Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Assume that you purchased 100 shares of a stock for $55 a share,that you received an annual dividend of $2.00 a share,and that you sold your stock for $65 a share at the end of one year.What is the total return on your investment? (Ignore commission amounts for this question.

Accepted Answer

A) $200 
B) $1,000 
C) $1,200 
D) $1,500 
E) $2,200 
A) $200 
B) $1,000 
C) $1,200 
D) $1,500 
E) $2,200

Question 3

If Widget Corp.has a PEG value of .5,the stock is most likely:

Accepted Answer

A) undervalued based on its projected growth rate. 
B) overvalued based on its projected growth rate. 
C) overvalued based on its $0.50 per share dividend. 
D) overvalued based on its good historical earnings. 
E) undervalued based on its poor historical earnings. 
A) undervalued based on its projected growth rate. 
B) overvalued based on its projected growth rate. 
C) overvalued based on its $0.50 per share dividend. 
D) overvalued based on its good historical earnings. 
E) undervalued based on its poor historical earnings.

Question 4

Assume that you purchased 100 shares of a stock for $70 a share,that you received an annual dividend of $0.60 a share,and that you sold your stock for $80 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question. )

Accepted Answer

A) $100 
B) $60 
C) $760 
D) $860 
E) $1,060 
A) $100 
B) $60 
C) $760 
D) $860 
E) $1,060

Question 5

Many investors and analysts believe that a corporation's ability or inability to generate earnings in the future may be one of the most significant factors that account for an increase or decrease in the value of a stock.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Why do corporations issue stock? Why do investors buy that stock?

Accepted Answer

Corporations issue stock as a way to rai

Question 8

Beverly Frickel purchased 100 shares of Gleason Systems stock for $42.50 per share.Her commission for this purchase was $35.She sold the stock two years later for $55 per share and a commission of $50.While she held the stock it paid a dividend of $1.50 per share.What was Beverly's total dollar return on this stock?

Accepted Answer

A) $1,250 
B) $1,165 
C) $1,500 
D) $1,315 
E) $1,400 
A) $1,250 
B) $1,165 
C) $1,500 
D) $1,315 
E) $1,400

Question 9

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms 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 10

Ashley Riley wants to buy the stock of XYZ Company at a specified 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 11

Christopher Pratt just bought shares of common stock.Which one of the following is he entitled to based on his ownership of these shares?

Accepted Answer

A) semi-annual interest payments 
B) guaranteed annual dividends 
C) right to vote on major corporate issues 
D) right to declare a stock split 
E) right to declare future dividends 
A) semi-annual interest payments 
B) guaranteed annual dividends 
C) right to vote on major corporate issues 
D) right to declare a stock split 
E) right to declare future dividends

Question 12

The dividend yield for a stock investment is calculated by dividing the annual dividend by the stock's current market value.

Accepted Answer

A) True 
 B)False

Question 13

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.What is the dividend yield?

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.

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

Assume that you purchased 100 shares of a stock for $55 a share,that you received an annual dividend of $2.00 a share,and that you sold your stock for $65 a share at the end of one year.What is the total return on your investment? (Ignore commission amounts for this question.

If Widget Corp.has a PEG value of .5,the stock is most likely:

Assume that you purchased 100 shares of a stock for $70 a share,that you received an annual dividend of $0.60 a share,and that you sold your stock for $80 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question. )

Many investors and analysts believe that a corporation's ability or inability to generate earnings in the future may be one of the most significant factors that account for an increase or decrease in the value of a stock.

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

Why do corporations issue stock? Why do investors buy that stock?

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)____________ stock.

Ashley Riley wants to buy the stock of XYZ Company at a specified price.What type of order should she place?

Christopher Pratt just bought shares of common stock.Which one of the following is he entitled to based on his ownership of these shares?

The dividend yield for a stock investment is calculated by dividing the annual dividend by the stock's current market value.

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.What is the dividend yield?

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

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

Assume that you purchased 100 shares of a stock for $55 a share,that you received an annual dividend of $2.00 a share,and that you sold your stock for $65 a share at the end of one year.What is the total return on your investment? (Ignore commission amounts for this question.

If Widget Corp.has a PEG value of .5,the stock is most likely:

Assume that you purchased 100 shares of a stock for $70 a share,that you received an annual dividend of $0.60 a share,and that you sold your stock for $80 a share at the end of one year.What is the total return for your investment? (Ignore commission amounts for this question. )

Many investors and analysts believe that a corporation's ability or inability to generate earnings in the future may be one of the most significant factors that account for an increase or decrease in the value of a stock.

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

Why do corporations issue stock? Why do investors buy that stock?

A stock issued by a corporation that has the potential of earning above-average profits when compared to other firms in the economy is called a(n)____________ stock.

Ashley Riley wants to buy the stock of XYZ Company at a specified price.What type of order should she place?

Christopher Pratt just bought shares of common stock.Which one of the following is he entitled to based on his ownership of these shares?

The dividend yield for a stock investment is calculated by dividing the annual dividend by the stock's current market value.

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.What is the dividend yield?

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