Question 1

In reality,what is one of the most important things an investor should do before investing in any stocks?

Accepted Answer

An investor should research and evaluate the company as well as the industry in which it operates.

Question 2

Megan decided to start investing in stocks.Which of the following should she do first?

Accepted Answer

A)  Base her investing decisions on hot tips she hears at work. 
B)  Buy stocks based solely on her stockbroker's recommendation. 
C)  Choose stocks based on recommendations from her family members. 
D)  Pick stocks at random. 
E)  Research the corporations she is interested in as well as their industries. 
A)  Base her investing decisions on hot tips she hears at work. 
B)  Buy stocks based solely on her stockbroker's recommendation. 
C)  Choose stocks based on recommendations from her family members. 
D)  Pick stocks at random. 
E)  Research the corporations she is interested in as well as their industries. E

Question 3

Marissa purchases $500 of stock from a corporation without having to use an account executive or a brokerage firm.She is using a

Accepted Answer

A)  Buy-and-hold technique. 
B)  Direct investment plan. 
C)  Direct reinvestment plan. 
D)  Dollar cost averaging technique. 
E)  Margin technique. 
A)  Buy-and-hold technique. 
B)  Direct investment plan. 
C)  Direct reinvestment plan. 
D)  Dollar cost averaging technique. 
E)  Margin technique. B

Question 4

Given the information shown here for TUV,Inc.,calculate the total return.
• Dividends per share = $1.50
• Purchase price (July 15,2010)= $50.00
• Sell price (July 15,2011)= $56.00

Accepted Answer

A)  ($6.00) 
B)  ($4.50) 
C)  $1.50 
D)  $6.00 
E)  $7.50 
A)  ($6.00) 
B)  ($4.50) 
C)  $1.50 
D)  $6.00 
E)  $7.50

Question 5

Companies need to repay money from equity financing.

Accepted Answer

A) True 
 B)False

Question 6

A put option is the right to buy 100 shares of stock at a guaranteed price before a specified expiration date.

Accepted Answer

A) True 
 B)False

Question 7

Given the information shown here for NMOP Inc.,calculate the dividend yield.
• Annual dividend = $4.00
• Current market value per share = $60.00

Accepted Answer

A)  6.7%. 
B)  $0.67. 
C)  15%. 
D)  $1.50. 
E)  Need more information to calculate. 
A)  6.7%. 
B)  $0.67. 
C)  15%. 
D)  $1.50. 
E)  Need more information to calculate.

Question 8

What is the difference between a primary market and a secondary market?

Accepted Answer

In a primary market,investors purchase s

Question 9

An investor can rely completely on the findings of a stock advisory service in order to make decisions about buying or selling stocks.

Accepted Answer

A) True 
 B)False

Question 10

The Yahoo! Finance website provides company-specific news,quotes,and charts.

Accepted Answer

A) True 
 B)False

Question 11

Mary Jane owns 1,000 shares of TUV Trucking Company.TUV pays a quarterly dividend of $.50 per share.What is the total annual dividend that Mary Jane will receive?

Accepted Answer

A)  $.25. 
B)  $1.00. 
C)  $500. 
D)  $1,000. 
E)  $2,000. 
A)  $.25. 
B)  $1.00. 
C)  $500. 
D)  $1,000. 
E)  $2,000.

Question 12

Alberta owns 100 shares of stock of ABC Company,and Bobby owns 200 shares of the same stock.If ABC Company pays a $5 dividend to all stockholders with a record date of Friday,June 15,then

Accepted Answer

A)  Alberta will receive the same amount as Bobby if they owned the stock two business days before the record date. 
B)  Both will receive the dividend as long as they sell their stock three days before the record date. 
C)  Alberta will receive half as much as Bobby if they owned the stock two business days before the record date. 
D)  Both will receive the dividend if they bought the stock on the record date. 
E)  Alberta and Bobby will receive the same amount if they bought the shares at least one month before the record date. 
A)  Alberta will receive the same amount as Bobby if they owned the stock two business days before the record date. 
B)  Both will receive the dividend as long as they sell their stock three days before the record date. 
C)  Alberta will receive half as much as Bobby if they owned the stock two business days before the record date. 
D)  Both will receive the dividend if they bought the stock on the record date. 
E)  Alberta and Bobby will receive the same amount if they bought the shares at least one month before the record date.

Question 13

You bought Harley-Davidson stock at $9 in March 2009 and saw the value increase to $22,then drop to $17 by early June 2009.Looking back,you realized that you missed a chance to "lock in" your profits and sell the stock at a price of $21 or higher.If you did not want to use a market order,what should you have used to lock in your profit?

Accepted Answer

You should have used a stop-lo

Question 14

Stock advisory services provide detailed information about corporations.Describe three sections that appear in a report.

Accepted Answer

The text provides an example from Mergen

Question 15

Detailed research for stock investors can be found on the Yahoo! Finance website instead of at a stock advisory service such as Value Line.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is some of the information found on a financial website such as www.finance.yahoo.com?

Accepted Answer

A)  Company name, last price, target price, price change. 
B)  52-week price range, number of shares traded (volume). 
C)  Market capitalization. 
D)  Dividend paid and yield. 
E)  All of this information is included. 
A)  Company name, last price, target price, price change. 
B)  52-week price range, number of shares traded (volume). 
C)  Market capitalization. 
D)  Dividend paid and yield. 
E)  All of this information is included.

Question 17

Which of the following usually offers some free information and charges for more detailed research information you may need to evaluate a stock investment?

Accepted Answer

A)  Financial websites such as www.finance.yahoo.com 
B)  Personal finance websites such as www.smartmoney.com 
C)  Professional advisory services such as Standard & Poor's Financial Information Services 
D)  Search engines such as Yahoo! 
E)  Securities and Exchange Commission website 
A)  Financial websites such as www.finance.yahoo.com 
B)  Personal finance websites such as www.smartmoney.com 
C)  Professional advisory services such as Standard & Poor's Financial Information Services 
D)  Search engines such as Yahoo! 
E)  Securities and Exchange Commission website

Question 18

Gloria bought GE stock on March 4,2009,at a price of $5.87 and then quickly sold it on March 19,2009,at $11.20.Gloria is classified as a speculator.

Accepted Answer

A) True 
 B)False

Question 19

Many people purchase investments without doing any research.

Accepted Answer

A) True 
 B)False

Question 20

The EPS of a company can be compared to the industry's average EPS.

Accepted Answer

A) True 
 B)False

In reality,what is one of the most important things an investor should do before investing in any stocks?

Megan decided to start investing in stocks.Which of the following should she do first?

Marissa purchases $500 of stock from a corporation without having to use an account executive or a brokerage firm.She is using a

Given the information shown here for TUV,Inc.,calculate the total return. • Dividends per share = $1.50 • Purchase price (July 15,2010)= $50.00 • Sell price (July 15,2011)= $56.00

Companies need to repay money from equity financing.

A put option is the right to buy 100 shares of stock at a guaranteed price before a specified expiration date.

Given the information shown here for NMOP Inc.,calculate the dividend yield. • Annual dividend = $4.00 • Current market value per share = $60.00

What is the difference between a primary market and a secondary market?

An investor can rely completely on the findings of a stock advisory service in order to make decisions about buying or selling stocks.

The Yahoo! Finance website provides company-specific news,quotes,and charts.

Mary Jane owns 1,000 shares of TUV Trucking Company.TUV pays a quarterly dividend of $.50 per share.What is the total annual dividend that Mary Jane will receive?

Alberta owns 100 shares of stock of ABC Company,and Bobby owns 200 shares of the same stock.If ABC Company pays a $5 dividend to all stockholders with a record date of Friday,June 15,then

Stock advisory services provide detailed information about corporations.Describe three sections that appear in a report.

Detailed research for stock investors can be found on the Yahoo! Finance website instead of at a stock advisory service such as Value Line.

Which of the following is some of the information found on a financial website such as www.finance.yahoo.com?

Which of the following usually offers some free information and charges for more detailed research information you may need to evaluate a stock investment?

Gloria bought GE stock on March 4,2009,at a price of $5.87 and then quickly sold it on March 19,2009,at $11.20.Gloria is classified as a speculator.

Many people purchase investments without doing any research.

The EPS of a company can be compared to the industry's average EPS.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

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Exam 12: Investing in Stocks

In reality,what is one of the most important things an investor should do before investing in any stocks?

Megan decided to start investing in stocks.Which of the following should she do first?

Marissa purchases $500 of stock from a corporation without having to use an account executive or a brokerage firm.She is using a

Given the information shown here for TUV,Inc.,calculate the total return. • Dividends per share = $1.50 • Purchase price (July 15,2010)= $50.00 • Sell price (July 15,2011)= $56.00

Companies need to repay money from equity financing.

A put option is the right to buy 100 shares of stock at a guaranteed price before a specified expiration date.

Given the information shown here for NMOP Inc.,calculate the dividend yield. • Annual dividend = $4.00 • Current market value per share = $60.00

What is the difference between a primary market and a secondary market?

An investor can rely completely on the findings of a stock advisory service in order to make decisions about buying or selling stocks.

The Yahoo! Finance website provides company-specific news,quotes,and charts.

Mary Jane owns 1,000 shares of TUV Trucking Company.TUV pays a quarterly dividend of $.50 per share.What is the total annual dividend that Mary Jane will receive?

Alberta owns 100 shares of stock of ABC Company,and Bobby owns 200 shares of the same stock.If ABC Company pays a $5 dividend to all stockholders with a record date of Friday,June 15,then

Stock advisory services provide detailed information about corporations.Describe three sections that appear in a report.

Detailed research for stock investors can be found on the Yahoo! Finance website instead of at a stock advisory service such as Value Line.

Which of the following is some of the information found on a financial website such as www.finance.yahoo.com?

Which of the following usually offers some free information and charges for more detailed research information you may need to evaluate a stock investment?

Gloria bought GE stock on March 4,2009,at a price of $5.87 and then quickly sold it on March 19,2009,at $11.20.Gloria is classified as a speculator.

Many people purchase investments without doing any research.

The EPS of a company can be compared to the industry's average EPS.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Mutual Funds

Starting Early: Retirement and Estate Planning

Filters