Econ: Unit 3 Quiz 3 Study Guide

The AMEX ® stock symbols usually have ____ letters

3

bear

one who believes the outlook for a market or stock is down.

net change

the change of the price of the stock from the previous day

volume

the number of stocks that were traded on the previous day

preferred stock

the owners of this type of stock will collect their dividends first, before the owners of common stock

Which of these words is NOT a name for a stock?

tickers

First, all the common stock in a company must be issued. Then the company will begin to issue preferred stock.

true

Look closely at the volume number - if a tiny "z" is shown before the number, the volume is not given in hundreds but is the actual number of stocks traded.

true

Your portfolio is all of the various stocks or bonds you, as an investor, hold.

true

You are checking up on your stocks in the newspaper. What column will tell you the volatility or risk and profit potential of a particular stock?

52 weeks high and low

________ are the safest stock investment you can make, since these corporations are so large and powerful they can withstand a downturn in the economy.

Blue chip stocks

PE ratio

Calculating relationship between price of company's stock and the earnings a company makes in the entire year

What type of stock simply shows that you own part of the company; it is the basic stock a company will issue?

Common

downturn

a dip in the market.

symbol

a one to four character symbol that is like a nickname for the company

penny stocks

considered the first and lowest level of stocks.

A share of profits received by a shareholder is called a ________.

dividend

If you see a wide margin between the high and low numbers, you can tell that there will be a smaller risk than with other stocks which have a large difference between their numbers in that column.

false

The activity the day before; the highest price and lowest price of the stock, along with the closing price at the end of the business day will be noted on the stock page as:

high, low, and close

The volume number is given in the _____ , so if you want to get the actual number of stocks traded, simply multiply the volume number by _______.

hundreds one hundred

Standard & Poor's ® 500 is a type of stock index favored by professionals because it includes a wider range of public companies than the Dow Jones SM industrial average does.

true