
Chapter 8 - Stock Market Flashcard
Flashcard
•
Business
•
12th Grade
•
Practice Problem
•
Hard
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65 questions
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1.
FLASHCARD QUESTION
Front
What rights and returns are associated with common stock ownership?
Back
Voting rights and potential capital gains
2.
FLASHCARD QUESTION
Front
How do stock exchanges function?
Back
By facilitating the buying and selling of stocks
3.
FLASHCARD QUESTION
Front
What is the purpose of stock indexes?
Back
To track the wider stock market
4.
FLASHCARD QUESTION
Front
What is the P/E ratio model used for?
Back
Assessing relative stock values
5.
FLASHCARD QUESTION
Front
What is a source of financial capital aside from debt?
Back
Equity
6.
FLASHCARD QUESTION
Front
How do public corporations raise money? Options: By issuing bonds, By issuing stocks, By taking loans, By selling assets
Back
By issuing stocks
7.
FLASHCARD QUESTION
Front
Why are investors willing to buy company stock?
Back
Because they can sell the stock during any trading day
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