Stock Unit Final
Cody owns 100 shares of PEP stock. PEP pays an annual dividend of $4 per share. Cody will receive his first quarterly payment on March 30. The dividend check will be for:
$100
Hayden's team purchased 100 shares of Tiffany and Co. stock for $52.50 per share. Two weeks later, the team decided to sell their 100 shares of Tiffany & Co. at the current market price of $55.25 per share. Excluding commissions, how much money was gained or lost on the sale?
$275 gain
If you bought 200 shares of YUMMY at $45 per share and sold YUMMY for $48 per share, how much money did you make?
$600
Based on the Rule of 72, if you invested money and earned 6% interest, your money would double in
12 years
Based on the rule of 72, if you invested money and earned 6% interest, your money would double in ?
12 years
What is a corporation?
A corporation is a group of people legally empowered to act as a body distinct from the individuals in the group
Cash is ready money, such as bills and coins, as well as money on deposit in the bank. Assets are things that are owned and that have value such as property and real estate.
Both are exchanges where stocks and bought and sold. The NYSE deals with large corporations and the American Stock Exchange deals with medium-sized companies.
A company, like the Hersey Company, may have products called?
Brands
What is the difference between cash and assets?
Cash is ready money, such as bills and coins, as well as money on deposit in the bank. Assets are things that are owned and that have value such as property and real estate.
Interest earned on interest after it is added to the principal amount is
Compound interest
List three factors that affect the price of stocks?
Corporate earnings, general economic business conditions, investor confidence in the economy, government actions/laws, and international events are all examples which could be used to support this question.
The quantity of goods consumers purchase in a given period of time at various prices is:
Demand
What are dividends?
Dividends are a portion of a company's retained earnings that are paid to shareholders.
A market indicator that averages stock prices in different industries to determine how the market as a whole is doing is:
Dow Jones Industrial Average
A market indicator that averages stock prices in different industries to determine how the market is doing as a whole is:
Dow Jones Industrial Average
A company's annual report gives information about its performance only in the past year.
False
A company's earnings are the same as its revenue
False
All stocks must pay dividends
False
An important difference between common stock and preferred stock is that the price of the common stock tends to be more stable, changing little over time, than that of preferred stock.
False
Bonds offer ownership in a corporation without a voice.
False
Investor actions have no impact on stock prices.
False
Mary's mother owns KLA stock. She currently receives a dividend payment every quarter. She is guaranteed to receive a dividend every quarter as long as she owns KLA stock.
False
Most U.S. stocks are traded on the New York Stock Exchange.
False
Newspaper stock symbols and ticker stock symbols are the same
False
Preferred stock is stock owned by family members of a private corporation
False
Shareholders in for-profit corporation are liable for the debts of the corporation
False
SimCity allows you to make arcologies once you reach a population level of 100,000 people.
False
The Dow Jones Industrial Average is not a good indicator of the stock market as a whole.
False
The third largest stock market in the world is the Tokyo Stock Exchange.
False
When a public company makes a profit, it is required to make dividend payments to shareholders.
False
When the Abar Company decides to go public, it can choose to be listed on any of the 3 major stock exchanges
False
You can look in today's newspaper to see today's closing price of a stock
False
FDIC is an acronym for
Federal Deposit Insurance Corporation
FDIC is an acronym for:
Federal Deposit Insurance Corporation
Real Estate is an example of a _____ asset
Fixed
If a company goes on strike, stocks will usually do what?
Go down
If oil prices go down, what will the stock price for most companies do?
Go up
Name the manager of the Boston Red Sox before Terry Francona?
Grady Little
A macroeconomic indicator that calculates the value of goods and services produced throughout a country is:
Gross Domestic Product (GDP)
A macroeconomic indicator that calculates the value of goods and services produced throughout a nation is:
Gross Domestic Product (GDP)
IPO means
Initial Public Offering
Investing in a large, mature company is less risky than investing in a small, new, or troubled company, but the chance of making great gains is more limited. Why?
Investing in a large, mature company is less risky than investing in a small, new, or troubled company, but the chance of making great gains is more limited. Why?
A company gets money from shareholders when
Its stock is issued
The three major US stock exchanges are ?
New York Stock Exchange, American Stock Exchange, and NASDAQ
Which two terms refer to the same thing? Choose all that apply.
OTC (over the counter) and NASDAQ
A ratio many investors consider to evaluate a stock's attractiveness is its
P/E ratio
Patrick bought 10 shares of stock in Mattel Corporation for $12 per share. Two years later, he sold 10 shares for $15 per share. Patrick made a ?
Profit
A corporation that sells shares of ownership in the company to the general public is a:
Public Company
A corporation that sells shares of ownership in the company to the general public is known as a:
Public company
The statement "risk and reward are related" implies:
The higher the risk, the higher the reward
You can estimate how long it will take for your investment to double in value by using the ?
The rule of 72
What is equity?
The value of a person's ownership in real property beyond the amount that is owed on it. A shareholder's equity in a corporation is the value of the shares he/she holds.
Stock prices fall because
There are more sellers than buyers
Something foregone by choosing one option over another option is known as:
Trade-off
A company can choose its own ticker symbol when it first lists on a stock exchange
True
A company's statement of income is one of the most important ways to measure profitability.
True
A free enterprise system is a type of economic system that allows anyone to start a business provided they have the resources to do so.
True
Corporations can be private or publicly owned
True
Investments that have high risk may provide higher returns over time than investments with less risk.
True
Most U.S. stocks are those of small companies, small cap, with growth potential.
True
Not all companies are publicly traded stock
True
Only rich people invest in the stock market
True
Preferred stock offers ownership in a corporation without having a voice.
True
The level of risk you take when you buy a stock depends mainly on the type of stock you buy.
True
Unlike common stock, preferred stock usually gives investors a guaranteed, set dividend.
True
You could find a tombstone ad in the:
Wall Street Journal
When Dee buys share of ABC stock, she becomes ?
a partial owner of the company
A bond is:
a type of IOU
Buying and selling stocks on the New York Stock Exchange can best be compared to ?
an auction
If a company is a subsidiary, it...
belongs to a larger company
Doritos, M&Ms, and Mountain Dew are examples of ?
brands
Which of the following are assets? Choose all that apply.
car, rented apartment, US savings bond
The two basic types of stock are ____ & _____
common and preferred
Owners of ? can vote for the board of directors and on issues that come up at annual meetings.
common stock
A partnership, corporation and proprietorship are forms of ?
companies
When an investor receives a dividend, that money comes from ?
company profits
Interest earned on interest occurs with:
compounding
A ? investor is one who doesn't like to take risks.
conservative
The Board of Directors of ABC Company voted to share some of the profits with its shareholders. They have decided to issue ?
dividends
Compounding is ?
earning interest on interest
For a company, profit is the remaining income after the
expenses are covered
Oil prices decline. What type of factor is this?
extrinsic
A company faces the possibility of a major strike. What type of factor is this?
intrinsic
When a company "goes public," what does it do?
issues stock for investors
To analyze a company, investors should compare its current value and performance to: Choose all that apply.
its past value and performance, and other companies in the same industry
Joey, a conservative investor with a low risk tolerance, is most likely to invest in ?
large cap companies
A company's annual report contains a balance sheet which shows the company's assets and ?
liabilities
Buying or selling stock at a specific price (or better) is known as
limit order
When you invest in a bond, you are?
loaning money to a company
A bond is an example of a(n) _______ liability
long-term
Pepsico is a ? company that sells ? like chips, soft drinks, and juices.
parent, products
Dividends are paid to shareholders from
part of the company's earnings
When you buy a share of stock in a public company, you become a ? of the company?
part-owner
The symbol of "pf" following a stock's name in the newspaper indicates the stock is ?
preferred stock
P/E stands for the ? divided by the company's earnings per share.
price of the stock
An important ratio for all investors to pay attention to is a:
price/earnings ratio
A company is a business that sells products or provides services to make a(n):
profit
Investing means ?
putting your money to work earning more money.
Units of 100 shares (or multiples of 100 shares) are called
round lots
The NYSE, AMEX, and NASDAQ are ?
stock exchanges
Selling stock when the share price falls below a certain level is known as:
stop-loss order
Why are investments riskier than savings?
there are more unknowns
The letters that identify a stock for investors is called the ?
ticker symbol
In a stock quote, volume means ?
total number of shares traded
Which of the following is not a listing requirement for the NYSE?
type of products/services offered
Common stock ownership gives investors
voting rights in shareholders meetings
If you own 100 shares of MartCo, valued at $15.45 per share, and this stock has split 2 for 1, then this means that:
you now own 200 shares of MartCo stock worth $1545.00
Owning a share of stock means:
you own part of the company
What are the advantages/disadvantages of putting your money in the stock market?
Adv: You stocks may gain in value more quickly than money put in the bank. Disad: Your stocks may lose value and your losses are not insured.
What does APR stand for?
Annual Percentage Rate
Yearly rate of interest charged for the use of credit is known as:
Annual Percentage Rate (APR)
How is a company's shareholders' value or net worth determined?
Assets - liabilities = net worth
Why do stock market analysts recommend diversification of stock holdings as a way of managing risk?
Because you can increase the likelihood that some of your stocks rise quickly in value, even if others fall.
The chance of losing all or part of your investment is called ?
Risk
What is stock?
Stock is a portion of a company's equity which represents ownership in a company.
What is the difference between stocks and bonds?
Stocks are shares of ownership in the equity of a company. Bonds are loans made to the company with the expectation that the money will be returned with interest.
The amount of products and/or services a producer is able to make available to consumers at a given time is known as:
Supply
The amount of products or services a producer is able to make available to consumers at a given time is:
Supply
