finance ch 12

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

Which is true

ALL these are true

false

Brokers in the over the counter market deal face to face

false

Buying on margin is an illegal activity

Board of directors

Common stockholders vote for members of this

false

Dollar cost averging is a short term investment stratagy

Dividend reinvestment

Means using dividends previously earned on stock to buy more shares

true

Short selling involves selling borrowed stock

Growth Stock

Stock in companies that reinvest profits rather than pay dividends

false

Stock is purchased on a stock exchange at its par value

Floor brokers

Stocks are bought and sold by

Blue chip stocks

Stocks of large well established companies

Income stocks

Stocks that pay high dividends over time

Stock Split

The letter "s" next to a stock in the stock listings would mean

true

The par value assigned to a stock has nothing to do with the stocks market value

true

The securities market is where you buy and sell stocks and bonds

false

Very few people own stock in the US

true

You can assign your stock voting rights to someone else by completing a proxy

Stock index

a benchmark that stock investors use to judge investment performance

Earnings per share

a corporations after tax earnings divided by the number of common stock shares outstanding

securities exchange

a marketplace where brokers buy and sell securities

Par Value

an assigned dollar value that is printed on a stock certificate.

Stock split

an increase in the number of outstanding shares of a stock

leverage

borrowing money to buy stock

Bull market

characterized by rising stock prices and optimism

Bear Market

characterized by the selling of stocks and pessimism

Cyclincal stock

do well in a good economy but poorly in a bad one

Public Corporation

issues stock that may be traded openly on the stock markets or over the counter

Direct investment

long term technique where investors buy stock directly from a corporation

Defensive stock

one that remains stable during an economic decline

Securities

stock exchanges are securities markets where buyers and sellers come together to buy and sell securities

Dollar-cost averaging

stratagy lowers the selling price of a stock and encourages more stock purchasing

Investment

the use of money to earn the best possible return with the least amount of risk

Yield

what represents the cost of dividens as a percentage of the current price

Dividends

when a company is profitable the stock holders often reveive a distribution of money

Market

when you buy stock you pay

The new york stock exchange

which is the largest organized exchange in the united states

Buy and Hold

which starag is a long term technique

Buying on margin

which stratagy is a short term technique

true

with preferred stock dividens are fixed regardless of how the company is doing


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