finance ch 12
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