Question 1

Dividends for common stock must be in cash.

Accepted Answer

A) True 
 B)False

Question 2

List two long-term investing techniques.

Accepted Answer

Long-term techniques include
•

Question 3

Why does a company split its stock?

Accepted Answer

A)  The stock is trading at a low price, and the company wants to increase its stock value. 
B)  It wants fewer shares outstanding. 
C)  The stock is trading at a high price, and the company wants to bring the price in line with a theoretical ideal range. 
D)  It wants the total market capitalization to be lower than the current level. 
E)  The company wants to guarantee that the stock price will increase. 
A)  The stock is trading at a low price, and the company wants to increase its stock value. 
B)  It wants fewer shares outstanding. 
C)  The stock is trading at a high price, and the company wants to bring the price in line with a theoretical ideal range. 
D)  It wants the total market capitalization to be lower than the current level. 
E)  The company wants to guarantee that the stock price will increase.

Question 4

If Jodi owns 200 shares of stock,a 2-for-1 stock split will double the value of her holdings.

Accepted Answer

A) True 
 B)False

Question 5

If you bought stock using dollar cost averaging as listed here,what was your average cost?

Accepted Answer

A)  $27.50 
B)  $27.78 
C)  $27.96 
D)  $28.57 
E)  $30.00 
A)  $27.50 
B)  $27.78 
C)  $27.96 
D)  $28.57 
E)  $30.00

Question 6

The opportunity,but not the obligation,to sell a security within a specified period of time is

Accepted Answer

A)  A call option. 
B)  Direct investing. 
C)  Buying on margin. 
D)  A put option. 
E)  A short sale. 
A)  A call option. 
B)  Direct investing. 
C)  Buying on margin. 
D)  A put option. 
E)  A short sale.

Question 7

The total return can be calculated only if a company pays dividends.

Accepted Answer

A) True 
 B)False

Question 8

An investment that pays higher than average dividends is called a(n)_______ stock.

Accepted Answer

A)  blue chip 
B)  income 
C)  micro cap 
D)  midcap 
E)  penny 
A)  blue chip 
B)  income 
C)  micro cap 
D)  midcap 
E)  penny

Question 9

If you purchase stock from your cousin Sam,you are buying stock on the primary market.

Accepted Answer

A) True 
 B)False

Question 10

If you want to guarantee that your order to sell a stock will be executed,you should place a stop order instead of a limit order.

Accepted Answer

A) True 
 B)False

Question 11

What is the relationship between the price-earnings ratio and confidence by investors in the company?

Accepted Answer

A direct relationship exists i

Question 12

What is a difference between common stock and preferred stock?

Accepted Answer

Preferred stockholders receive a constan

Question 13

Kelly bought some stock using an investment bank from the issuer of those securities.She bought her shares on the

Accepted Answer

A)  Initial public offering. 
B)  Investment bank. 
C)  Primary market. 
D)  Secondary market. 
E)  Securities exchange. 
A)  Initial public offering. 
B)  Investment bank. 
C)  Primary market. 
D)  Secondary market. 
E)  Securities exchange.

Question 14

NYSE stands for

Accepted Answer

A)  New York Securities Exchange. 
B)  New York Stock Exchange. 
C)  New York School of Engineering. 
D)  Never Yet So Even. 
E)  New Year Selling Exchange. 
A)  New York Securities Exchange. 
B)  New York Stock Exchange. 
C)  New York School of Engineering. 
D)  Never Yet So Even. 
E)  New Year Selling Exchange.

Question 15

Using the information given here,what are the earnings per share for DEF Company?
• Income = $180,000
• Number of shares outstanding = 60,000
• Price per share = $30
• Book value per share = $10

Accepted Answer

A)  $1.00 
B)  $2.00 
C)  $3.00 
D)  $5.00 
E)  $6.00 
A)  $1.00 
B)  $2.00 
C)  $3.00 
D)  $5.00 
E)  $6.00

Question 16

Which of the following changes would NOT cause analysts to change earnings estimates for a health care corporation?

Accepted Answer

A)  Interest rates 
B)  Unemployment rates 
C)  The economy in general 
D)  Industry 
E)  Weather 
A)  Interest rates 
B)  Unemployment rates 
C)  The economy in general 
D)  Industry 
E)  Weather

Question 17

Mohammad was interested in purchasing low-value securities that were not listed on the NYSE.He probably used _____ to complete his transaction.

Accepted Answer

A)  an initial public offering 
B)  an investment bank 
C)  the over-the-counter market 
D)  a primary market 
E)  the securities exchange commission website 
A)  an initial public offering 
B)  an investment bank 
C)  the over-the-counter market 
D)  a primary market 
E)  the securities exchange commission website

Question 18

A.J.wants to buy a stock at its current market price.He should use a market order.

Accepted Answer

A) True 
 B)False

Question 19

When choosing a broker for your securities transactions,you should ask yourself some questions.What are three questions you should ask?

Accepted Answer

Possible questions include these:
• Can

Question 20

The book value of a stock is equal to the result of total assets less total liabilities divided by the number of outstanding shares of common stock.

Accepted Answer

A) True 
 B)False

Dividends for common stock must be in cash.

List two long-term investing techniques.

Why does a company split its stock?

If Jodi owns 200 shares of stock,a 2-for-1 stock split will double the value of her holdings.

If you bought stock using dollar cost averaging as listed here,what was your average cost?

The opportunity,but not the obligation,to sell a security within a specified period of time is

The total return can be calculated only if a company pays dividends.

An investment that pays higher than average dividends is called a(n)_______ stock.

If you purchase stock from your cousin Sam,you are buying stock on the primary market.

If you want to guarantee that your order to sell a stock will be executed,you should place a stop order instead of a limit order.

What is the relationship between the price-earnings ratio and confidence by investors in the company?

What is a difference between common stock and preferred stock?

Kelly bought some stock using an investment bank from the issuer of those securities.She bought her shares on the

NYSE stands for

Using the information given here,what are the earnings per share for DEF Company? • Income = $180,000 • Number of shares outstanding = 60,000 • Price per share = $30 • Book value per share = $10

Which of the following changes would NOT cause analysts to change earnings estimates for a health care corporation?

Mohammad was interested in purchasing low-value securities that were not listed on the NYSE.He probably used _____ to complete his transaction.

A.J.wants to buy a stock at its current market price.He should use a market order.

When choosing a broker for your securities transactions,you should ask yourself some questions.What are three questions you should ask?

The book value of a stock is equal to the result of total assets less total liabilities divided by the number of outstanding shares of common stock.

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

Exam 12: Investing in Stocks

Dividends for common stock must be in cash.

List two long-term investing techniques.

Why does a company split its stock?

If Jodi owns 200 shares of stock,a 2-for-1 stock split will double the value of her holdings.

If you bought stock using dollar cost averaging as listed here,what was your average cost?

The opportunity,but not the obligation,to sell a security within a specified period of time is

The total return can be calculated only if a company pays dividends.

An investment that pays higher than average dividends is called a(n)_______ stock.

If you purchase stock from your cousin Sam,you are buying stock on the primary market.

If you want to guarantee that your order to sell a stock will be executed,you should place a stop order instead of a limit order.

What is the relationship between the price-earnings ratio and confidence by investors in the company?

What is a difference between common stock and preferred stock?

Kelly bought some stock using an investment bank from the issuer of those securities.She bought her shares on the

NYSE stands for

Using the information given here,what are the earnings per share for DEF Company? • Income = $180,000 • Number of shares outstanding = 60,000 • Price per share = $30 • Book value per share = $10

Which of the following changes would NOT cause analysts to change earnings estimates for a health care corporation?

Mohammad was interested in purchasing low-value securities that were not listed on the NYSE.He probably used _____ to complete his transaction.

A.J.wants to buy a stock at its current market price.He should use a market order.

When choosing a broker for your securities transactions,you should ask yourself some questions.What are three questions you should ask?

The book value of a stock is equal to the result of total assets less total liabilities divided by the number of outstanding shares of common stock.

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