PF Ch 8 Review

Front

Stockholders can lose all of their investment if the company fails or goes out of business.

Back

True

Front

Growth stocks typically pay the most certain and predictable dividends.

Back

False

Front

Bull markets are usually short and savage, and stock prices may fall as much as 20 percent.

Back

False

Front

The Dow Jones Industrial Average is an average of the price movements of 30 major stocks listed on the New York Stock Exchange.

Back

True

Front

A company must meet a minimum number of public shares and dollar market-value requirements to be listed on the New York Stock Exchange.

Back

True

Front

A stock split lowers the selling price of a stock, making the shares more affordable and encouraging investors to buy more.

Back

True

Front

The percentage of the current stock price the dividends represent is called percent yield.

Back

True

Front

An increase in the value of a stock over time is called a(n)

Back

capital gain.

Front

The price for which a stock is bought and sold in the marketplace is called the

Back

market value.

Front

Current Profit on Stock ÷ Purchase Price + Commission =

Back

Return on Investment