Question 1

According to your text,over time,investing in stocks generally outperforms most other investments.

Accepted Answer

A) True 
 B)False

Question 2

In SWOT analysis,the O stands for

Accepted Answer

A) obstacles. 
B) other. 
C) obstructions. 
D) opportunities. 
A) obstacles. 
B) other. 
C) obstructions. 
D) opportunities.

Question 3

Fundamental analysis looks at which of the following?

Accepted Answer

A) Future earnings 
B) Dividends 
C) Expected levels of interest rates 
D) The firm's risk 
E) All of the above 
A) Future earnings 
B) Dividends 
C) Expected levels of interest rates 
D) The firm's risk 
E) All of the above

Question 4

________ are a company's distribution of its profits in the form of cash or stock to its owners.

Accepted Answer

A) Dividends 
B) Coupon interest payments 
C) Equity payments 
D) Shareholder divestments 
E) None of the above 
A) Dividends 
B) Coupon interest payments 
C) Equity payments 
D) Shareholder divestments 
E) None of the above

Question 5

The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.

Accepted Answer

A) True 
 B)False

Question 6

EPS is calculated by subtracting preferred stock dividends from net income and then dividing by?

Accepted Answer

A) Total revenue 
B) Number of shares of common stock outstanding 
C) Book value per share 
D) Dividend yield 
A) Total revenue 
B) Number of shares of common stock outstanding 
C) Book value per share 
D) Dividend yield

Question 7

When a company buys back its own common stock it is engaging in a

Accepted Answer

A) stock split. 
B) stock reissue. 
C) stock repurchase. 
D) stock repo. 
E) none of the above. 
A) stock split. 
B) stock reissue. 
C) stock repurchase. 
D) stock repo. 
E) none of the above.

Question 8

For several years you have been using charts and computer programs to project trends in the stock market.You are engaging in what type of analysis?

Accepted Answer

A) Dollar cost averaging 
B) Technical 
C) Fundamental 
D) Price/Earnings 
E) None of the above 
A) Dollar cost averaging 
B) Technical 
C) Fundamental 
D) Price/Earnings 
E) None of the above

Question 9

When a corporation repurchases its own stock,it does so in the secondary markets.

Accepted Answer

A) True 
 B)False

Question 10

Discuss four reasons to invest in stocks.

Accepted Answer

Over time,common stocks outperform all o

Question 11

ComChip is a computer chip manufacturer.Its stock is selling at $50 per share and earnings are $2 per share.What is the stock's P/E ratio?

Accepted Answer

A) 50.00 
B) 45.80 
C) 25.00 
D) 27.78 
E) 22.50 
A) 50.00 
B) 45.80 
C) 25.00 
D) 27.78 
E) 22.50

Question 12

A buy-and-hold investment strategy

Accepted Answer

A) avoids timing the market. 
B) minimizes transaction costs. 
C) postpones capital gains taxes. 
D) means your gains will be taxed as long-term capital gains. 
E) all of the above. 
A) avoids timing the market. 
B) minimizes transaction costs. 
C) postpones capital gains taxes. 
D) means your gains will be taxed as long-term capital gains. 
E) all of the above.

Question 13

Common stockholders not only have the right to elect the board but also must approve day-to-day decisions of the chief executive officer.

Accepted Answer

A) True 
 B)False

Question 14

The ________ date is the date the stock begins trading without dividend,meaning that if you buy it after this date you will not get the dividend for that year.

Accepted Answer

A) payment date 
B) declaration date 
C) ex-dividend date 
D) reinvestment date 
E) maturity date 
A) payment date 
B) declaration date 
C) ex-dividend date 
D) reinvestment date 
E) maturity date

Question 15

If you wanted information about how the entire stock market is performing,which index would provide you with information on virtually all types and sizes of companies?

Accepted Answer

A) Dow Jones Industrials 
B) S&P 500 
C) NASDAQ 100 
D) Wilshire 5000 
A) Dow Jones Industrials 
B) S&P 500 
C) NASDAQ 100 
D) Wilshire 5000

Question 16

As compared to growth stocks,income stocks pay ________ dividends with ________ growth in earnings.

Accepted Answer

A) relatively high;relatively high 
B) the same;relatively high 
C) relatively high;relatively little 
D) relatively high;moderate 
E) relatively high;the same 
A) relatively high;relatively high 
B) the same;relatively high 
C) relatively high;relatively little 
D) relatively high;moderate 
E) relatively high;the same

Question 17

The market price of the stock is a reflection of the potential earnings per share of the firm.

Accepted Answer

A) True 
 B)False

Question 18

Is a positive stock split good for the current share holders?

Accepted Answer

Yes,for the most part a positive stock s

Question 19

While you can't be assured of what you will get when you sell your stock,you will most likely not have difficulty selling it.

Accepted Answer

A) True 
 B)False

Question 20

The Beta of the market is equal to

Accepted Answer

A) 2 
B) 0 
C) 0.5 
D) 1 
A) 2 
B) 0 
C) 0.5 
D) 1

According to your text,over time,investing in stocks generally outperforms most other investments.

In SWOT analysis,the O stands for

Fundamental analysis looks at which of the following?

________ are a company's distribution of its profits in the form of cash or stock to its owners.

The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.

EPS is calculated by subtracting preferred stock dividends from net income and then dividing by?

When a company buys back its own common stock it is engaging in a

For several years you have been using charts and computer programs to project trends in the stock market.You are engaging in what type of analysis?

When a corporation repurchases its own stock,it does so in the secondary markets.

Discuss four reasons to invest in stocks.

ComChip is a computer chip manufacturer.Its stock is selling at $50 per share and earnings are $2 per share.What is the stock's P/E ratio?

A buy-and-hold investment strategy

Common stockholders not only have the right to elect the board but also must approve day-to-day decisions of the chief executive officer.

The ________ date is the date the stock begins trading without dividend,meaning that if you buy it after this date you will not get the dividend for that year.

If you wanted information about how the entire stock market is performing,which index would provide you with information on virtually all types and sizes of companies?

As compared to growth stocks,income stocks pay dividends with growth in earnings.

The market price of the stock is a reflection of the potential earnings per share of the firm.

Is a positive stock split good for the current share holders?

While you can't be assured of what you will get when you sell your stock,you will most likely not have difficulty selling it.

The Beta of the market is equal to

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

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Exam 12: Investing in Stocks

According to your text,over time,investing in stocks generally outperforms most other investments.

In SWOT analysis,the O stands for

Fundamental analysis looks at which of the following?

________ are a company's distribution of its profits in the form of cash or stock to its owners.

The only time to buy stocks is in a bull market and the only times to sell stocks is during a bear market.

EPS is calculated by subtracting preferred stock dividends from net income and then dividing by?

When a company buys back its own common stock it is engaging in a

For several years you have been using charts and computer programs to project trends in the stock market.You are engaging in what type of analysis?

When a corporation repurchases its own stock,it does so in the secondary markets.

Discuss four reasons to invest in stocks.

ComChip is a computer chip manufacturer.Its stock is selling at $50 per share and earnings are $2 per share.What is the stock's P/E ratio?

A buy-and-hold investment strategy

Common stockholders not only have the right to elect the board but also must approve day-to-day decisions of the chief executive officer.

The ________ date is the date the stock begins trading without dividend,meaning that if you buy it after this date you will not get the dividend for that year.

If you wanted information about how the entire stock market is performing,which index would provide you with information on virtually all types and sizes of companies?

As compared to growth stocks,income stocks pay ________ dividends with ________ growth in earnings.

The market price of the stock is a reflection of the potential earnings per share of the firm.

Is a positive stock split good for the current share holders?

While you can't be assured of what you will get when you sell your stock,you will most likely not have difficulty selling it.

The Beta of the market is equal to

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

As compared to growth stocks,income stocks pay dividends with growth in earnings.