Exam 14: Investing Fundamentals

Name three applications of present and future value concepts to stocks.

The largest market where existing securities are sold is called the ________ market.

In the secondary market,stock prices are

In addition to the interest earned on a bond,it is also possible that the actual bond will increase in value over time.

It is December 30th and you have stock in Zero Corporation,which you bought on March 1st that has lost $2,000 in value.You have already sold other stock that you bought this year for a gain.From a tax standpoint,what should you do with the Zero stock?

If you wish to have the power to vote on who will serve on the board of directors of a corporation you will need to purchase shares of ________ in the corporation.

Dividends are a portion of

An initial public offering (IPO)is characterized by all of the following except

If you purchase 100 shares of Ajax Corporation for $15 a share and one year later sell it for $20 a share,what was your return if the stock paid $2 per share dividends? (Ignore commissions and trading fees.Round to the nearest whole percent.)

Assuming a tax rate on ordinary income of 25% and a long-term capital gain rate of 10%,how much would you pay in taxes if you sold stock "A" for a $200 capital gain after holding it for 5 months,stock "B" for a $300 capital gain after holding it for 8 months,and stock "C" for a $500 capital gain after holding it for 14 months? (a)$250 (b)$100 (c)$130 (d)$175

Individual risk is