Stock Market

This market professional, located in the booths around the perimeter of the floor, buys and sells securities for the general public. A.) Broker B.) Seat C.) Specialist D.) Trading Posts

A.) Broker

A growth company which has grown earnings extremely fast since its initial public offering is A.) Google B.) Mars C.) Petco

A.) Google

A dividend is a portion of the company's profits paid to its shareholders. A.) True B.) False

A.) True

Blue chip stock is offered by well performing companies. A.) True B.) False

A.) True

Stocks issued by insurance companies are defensive stocks. A.) True B.) False

A.) True

You can only buy stock in publicly held companies. A.) True B.) False

A.) True

A tombstone ad is prepared for companies that are facing financial failure. A.) True B.) False

B.) False

Investment bankers and the general public buy stock on the same type of market. A.) True B.) False

B.) False

It is the responsibility of the stockholder to pay the bills if the company fails. A.) True B.) False

B.) False

People who invest in the stock market will automatically make money. A.) True B.) False

B.) False

Preferred stock holders have voting rights in the company. A.) True B.) False

B.) False

Profits represent ownership of shares of a company. A.) True B.) False

B.) False

Risk is only associated with the purchase of common stocks. A.) True B.) False

B.) False

Stockholders can only make money by collecting dividends. A.) True B.) False

B.) False

To go public, a company must issue an IPO (Initial Purchase Option). A.) True B.) False

B.) False

To compare stock performance within the same industry, companies are grouped into A.) Industry blocks B.) Market Sectors C.) Performance sectors

B.) Market sectors A.) B.) C.) D.)

This represents membership in the NYSE and the right to trade on the NYSE Trading Floor. A.) Broker B.) Seat C.) Specialist D.) Trading Posts

B.) Seat

A company's market capitalization (size) is calculated by which formula? A.) Stock price divided by earnings per share B.) Stock price multiplied by the number of shares outstanding C.) The number of shares outstanding divided by the stock price

B.) Stock price multiplied by the number of shares outstanding

What is the market cap for a company that has 5 million shares outstanding and a stock price of $10? A.) $2 million B.) $10 million C.) $50 million

C.) $50 million

Which is NOT an example of a cyclical company? A.) Automotive B.) Construction C.) Food

C.) Food

This market professional oversees the orderly trading of specific stocks and stands outside the trading posts on the Trading Floor. A.) Broker B.) Seat C.) Specialist D.) Trading Posts

C.) Specialist

All buying and selling of stock occurs at these 17 stations on the Trading Floor. A.) Broker B.) Seat C.) Specialist D.) Trading Posts

D.) Trading Posts