Before You Invest

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

An important difference between common stock and preferred stock is that the price of the common stock tends to be more ________ than that of preferred stock. a.) volatile b.) stable c.) expensive

a.)

Common stock ownership gives investors: a.) voting rights in shareholders meetings b.) guaranteed dividends c.) low risk with a high rate of return

a.)

Stock prices fall because: a.) there are more sellers than buyers b.) companies don't make profits everyday c.) dividends are paid

a.)

A company gets money from shareholders when: a.) its stock is issued b.) it makes a profit c.) shares are traded between buyers and sellers

a.)

"pf" Next to a stock means that this stock is: a.) private fund stock b.) preferred stock c.) performing at a higher than usual profit margin

b.)

Based on the Rule of 72, if you invested money and earned 8% interest, your money would double in a.) 72 years b.) 9 years c.) 8 years

b.)

Conservative, _____________, and moderate are types of risk takers. a.) democratic b.) speculative c.) entrepreneurial

b.)

Dividends are defined as: a.) stock b.) money paid out regularly (usually quarterly) to by a company to its share holders c.) bonds sold by municipalities

b.)

Mary's mother owns Target stock. She currently receives a dividend payment every quarter. She is guaranteed to receive a dividend every quarter as long as she owns Target stock. a.) True b.) False

b.)

Some investors place a greater priority on high earnings than on safety. They prefer __________ stocks. a.) no beta b.) low beta c.) high beta

b.)

The statement "risk and reward are related" implies: a.) making money in the stock market is risky b.) the lower the risk the lower the reward c.) there is no reward in taking a risk

b.)

You love KitKats! You bought 150 shares at $45 to add to your portfolio. While eating away, you earned a dividend of .75 a share. Later you decided you are getting fat and you sell your Hershey stock for $44 a share. How did your candy addiction affect you investment? a.) You made $102.50 b.) You lost $37.50 c.) You lost $150

b.)

A bond is: a.) contract for credit b.) money borrowed from a bank c.) a type of IOU

c.)

Cal owns 100 shares of Tricor stock. Tricor pays an annual dividend of $6.25 per share. Cal will receive his first quarterly payment on March 30. The dividend check will be for: a.) $6.25 b.) $625.00 c.) $156.25

c.)

IPO means: a.) investor protection option b.) income public offering c.) initial public offering

c.)

If a dividend has been announced but not yet paid, the stock is said to have gone: a.) dividend deferred b.) pre-dividend c.) ex-dividend

c.)

Interest earned on interest occurs with: a.) buying on margin b.) diversification c.) compounding

c.)

You could find a tombstone ad: a.) On a television commercial b.) In a company's annual report c.) In the Wall Street Journal

c.)


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