Chapter 17 Quiz

Money paid to stockholders from a corporation's earnings. Select one: a. Dividends b. Leverage c. Stock Split d. Securities Exchange

a. Dividends

A stockholder's written authorization to transfer his or her voting rights to someone else. Select one: a. Proxy b. Leverage c. Dividends d. Direct Investment

a. Proxy

A marketplace where brokers who are representing investors meet to buy and sell securities. Select one: a. Securities Exchange b. Stock Split c. Short Selling d. Auction Market

a. Securities Exchange

Selling borrowed stock that must be replaced at a later time. Select one: a. Short Selling b. Leverage c. Stock Split d. Proxy

a. Short Selling

A prolonged period of rising stock prices and a general feeling of investor optimism. Select one: a. Auction Market b. Bull Market c. Direct Investment d. Dividend Reinvestment

b. Bull Market

The use of dividends previously earned on stock to buy more shares. Select one: a. Securities Exchange b. Dividend Reinvestment c. Leverage d. Proxy

b. Dividend Reinvestment

The use of borrowed money to buy securities. Select one: a. Stock Split b. Leverage c. Direct Investment d. Secruities Exchange

b. Leverage

The price for which stock is bought and sold in the marketplace. Select one: a. Stock Split b. Market Value c. Bull Market d. Proxy

b. Market Value

A company whose stock is traded openly on stock markets. Select one: a. Proxy b. Public Corporation c. Auction Market d. Securities Exchange

b. Public Corporation

An exchange where stock is sold to the highest bidder and bought from the lowest offeror. Select one: a. Leverage b. Securities Exchange c. Auction Market d. Proxy

c. Auction Market

Stocks in corporations that have a consistent history of paying high dividends. Select one: a. Preferred Stock b. Blue Chip Stocks c. Income Stocks d. Penny Stocks

c. Income Stocks

An increase in the number of outstanding shares of a company's stock. Select one: a. Leverage b. Dividends c. Stock Split d. Securities Exchange

c. Stock Split

Stocks of large, well-established corporations with a solid record of profitability. Select one: a. Penny Stock b. Preferred Stock c. Income Stocks d. Blue Chip Stocks

d. Blue Chip Stocks

Buying stock directly from a corporation. Select one: a. Auction Market b. Dividend Reinvestment c. Securities Exchange d. Direct Investment

d. Direct Investment

A type of stock that pays a fixed dividend but has no voting rights. Select one: a. Stock Split b. Income Stocks c. Blue Chip Stocks d. Preferred Stock

d. Preferred Stock