Question 1

The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.

Accepted Answer

A) True 
 B)False

Question 2

By using the risk evaluation tool called beta,you can measure the movement of your individual stock compared to the S&P 500.

Accepted Answer

A) True 
 B)False

Question 3

What point marks the purchase of common stock without a right to a declared dividend?

Accepted Answer

A) Dividend payout date 
B) Declaration date 
C) Ex-dividend date 
D) Cut-off point 
E) End of fiscal year 
A) Dividend payout date 
B) Declaration date 
C) Ex-dividend date 
D) Cut-off point 
E) End of fiscal year

Question 4

What factors can effect the market price of a stock?

Accepted Answer

There are many factors that can effect t

Question 5

All of the following are stock market indexes except

Accepted Answer

A) the Dow Jones Industrial Average. 
B) the Standard & Poor's 500. 
C) the Russell 100. 
D) the Wilshire 5000. 
A) the Dow Jones Industrial Average. 
B) the Standard & Poor's 500. 
C) the Russell 100. 
D) the Wilshire 5000.

Question 6

The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

Accepted Answer

A) 14.38% 
B) 8.33% 
C) 23.9% 
D) 5% 
A) 14.38% 
B) 8.33% 
C) 23.9% 
D) 5%

Question 7

The following equation, (net income - preferred stock dividends)/number of shares of common stock outstanding,allows us to calculate the ________ and this information is necessary to calculate the ________ ratio.

Accepted Answer

A) dividend yield;dividend 
B) earnings per share;P/E 
C) market-to-book ratio;book-to-market 
D) stock growth;P/E 
E) price-to-book ratio;market-to-book 
A) dividend yield;dividend 
B) earnings per share;P/E 
C) market-to-book ratio;book-to-market 
D) stock growth;P/E 
E) price-to-book ratio;market-to-book

Question 8

Technical analysis focuses on supply and demand,using charts and computer programs to project stock trends.

Accepted Answer

A) True 
 B)False

Question 9

Large-caps,mid-caps,and small-caps refer to the size of the firm issuing the stock,more specifically,to its

Accepted Answer

A) book value. 
B) market value. 
C) dividend. 
D) capacity for growth. 
A) book value. 
B) market value. 
C) dividend. 
D) capacity for growth.

Question 10

Discuss the relationship between growth stocks and income stocks and their P/E ratios.

Accepted Answer

A growth stock is a company that is acti

Question 11

You purchased 100 shares of Quantex at $150 per share for a total investment of $15,000.After your purchase the stock had a 3 for 1 split.How many shares do you now own and how much is your original investment now worth?

Accepted Answer

A) 100 shares and $150 dollars 
B) 300 shares and $15,000 dollars 
C) 100 shares and $45,000 dollars 
D) 300 shares and $45,000 dollars 
A) 100 shares and $150 dollars 
B) 300 shares and $15,000 dollars 
C) 100 shares and $45,000 dollars 
D) 300 shares and $45,000 dollars

Question 12

You are looking at the stock quotes in your newspaper and you see that your stock closed up 5% yesterday.Where would you look to see how it has been doing over the last year?

Accepted Answer

A) Prior day's close 
B) P/E ratio 
C) 52-week high and low 
D) Market cap 
A) Prior day's close 
B) P/E ratio 
C) 52-week high and low 
D) Market cap

Question 13

Most of the stocks listed in the Dow Jones Industrials have high P/E ratios and are classified as speculative stocks.

Accepted Answer

A) True 
 B)False

Question 14

Because every company is almost certain to experience a bad year or two,holding on to stock for only one year

Accepted Answer

A) is not a very sound investment decision. 
B) is a very sound investment decision. 
C) is a good idea for those who may need to liquidate their investment quickly. 
D) diversifies one's portfolio risk. 
A) is not a very sound investment decision. 
B) is a very sound investment decision. 
C) is a good idea for those who may need to liquidate their investment quickly. 
D) diversifies one's portfolio risk.

Question 15

If you were to purchase common stocks issued by large,nationally known companies with sound financial histories with solid dividend and growth records you would own what are called

Accepted Answer

A) best-bet stocks. 
B) blue-chip stocks. 
C) performance stocks. 
D) long-run performance stocks. 
E) none of the above. 
A) best-bet stocks. 
B) blue-chip stocks. 
C) performance stocks. 
D) long-run performance stocks. 
E) none of the above.

Question 16

Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.

Accepted Answer

A) True 
 B)False

Question 17

The Dow Jones Industrial Average has been an index since what year?

Accepted Answer

A) 1796 
B) 1896 
C) 1996 
D) 2006 
A) 1796 
B) 1896 
C) 1996 
D) 2006

Question 18

Deborah recently purchased a stock that is considerably more risky than a typical stock.It has exhibited a high degree of earnings variability.This is an example of a(n)________ stock.

Accepted Answer

A) speculative 
B) blue-chip 
C) income 
D) mid-cap 
A) speculative 
B) blue-chip 
C) income 
D) mid-cap

Question 19

Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

Accepted Answer

A) The earnings per share 
B) The market-to-book ratio 
C) The book value 
D) The dividend yield 
A) The earnings per share 
B) The market-to-book ratio 
C) The book value 
D) The dividend yield

Question 20

A technical analysis is the framework for analyzing a security in which you look at a firm's internal strengths and weaknesses and external opportunities and threats in order to gain an understanding of what the future holds for that firm and its stock.

Accepted Answer

A) True 
 B)False

The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.

By using the risk evaluation tool called beta,you can measure the movement of your individual stock compared to the S&P 500.

What point marks the purchase of common stock without a right to a declared dividend?

What factors can effect the market price of a stock?

All of the following are stock market indexes except

The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

The following equation, (net income - preferred stock dividends)/number of shares of common stock outstanding,allows us to calculate the and this information is necessary to calculate the ratio.

Technical analysis focuses on supply and demand,using charts and computer programs to project stock trends.

Large-caps,mid-caps,and small-caps refer to the size of the firm issuing the stock,more specifically,to its

Discuss the relationship between growth stocks and income stocks and their P/E ratios.

You purchased 100 shares of Quantex at $150 per share for a total investment of $15,000.After your purchase the stock had a 3 for 1 split.How many shares do you now own and how much is your original investment now worth?

You are looking at the stock quotes in your newspaper and you see that your stock closed up 5% yesterday.Where would you look to see how it has been doing over the last year?

Most of the stocks listed in the Dow Jones Industrials have high P/E ratios and are classified as speculative stocks.

Because every company is almost certain to experience a bad year or two,holding on to stock for only one year

If you were to purchase common stocks issued by large,nationally known companies with sound financial histories with solid dividend and growth records you would own what are called

Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.

The Dow Jones Industrial Average has been an index since what year?

Deborah recently purchased a stock that is considerably more risky than a typical stock.It has exhibited a high degree of earnings variability.This is an example of a(n)________ stock.

Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

A technical analysis is the framework for analyzing a security in which you look at a firm's internal strengths and weaknesses and external opportunities and threats in order to gain an understanding of what the future holds for that firm and its stock.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 12: Investing in Stocks

The price/earnings ratio is an indication of how much investors are willing to pay for a dollar of the company's earnings.

By using the risk evaluation tool called beta,you can measure the movement of your individual stock compared to the S&P 500.

What point marks the purchase of common stock without a right to a declared dividend?

What factors can effect the market price of a stock?

All of the following are stock market indexes except

The firm will pay an annual dividend this year of $2 per share.The current market price of the stock is $40.00 per share.The book value of this stock is $24.00 per share.The earnings per share for this firm is $5.75.What is the current dividend yield of this stock?

The following equation, (net income - preferred stock dividends)/number of shares of common stock outstanding,allows us to calculate the ________ and this information is necessary to calculate the ________ ratio.

Technical analysis focuses on supply and demand,using charts and computer programs to project stock trends.

Large-caps,mid-caps,and small-caps refer to the size of the firm issuing the stock,more specifically,to its

Discuss the relationship between growth stocks and income stocks and their P/E ratios.

You purchased 100 shares of Quantex at $150 per share for a total investment of $15,000.After your purchase the stock had a 3 for 1 split.How many shares do you now own and how much is your original investment now worth?

You are looking at the stock quotes in your newspaper and you see that your stock closed up 5% yesterday.Where would you look to see how it has been doing over the last year?

Most of the stocks listed in the Dow Jones Industrials have high P/E ratios and are classified as speculative stocks.

Because every company is almost certain to experience a bad year or two,holding on to stock for only one year

If you were to purchase common stocks issued by large,nationally known companies with sound financial histories with solid dividend and growth records you would own what are called

Stock splits increase the number of the shares you own,but decrease the value of your total holdings with the company.

The Dow Jones Industrial Average has been an index since what year?

Deborah recently purchased a stock that is considerably more risky than a typical stock.It has exhibited a high degree of earnings variability.This is an example of a(n)________ stock.

Your investment goal is to receive a stream of income from your investment.Which of the following would be important information to determine whether a particular stock purchase would suit your plan?

A technical analysis is the framework for analyzing a security in which you look at a firm's internal strengths and weaknesses and external opportunities and threats in order to gain an understanding of what the future holds for that firm and its stock.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

The following equation, (net income - preferred stock dividends)/number of shares of common stock outstanding,allows us to calculate the and this information is necessary to calculate the ratio.