Stock Review

Stockholders can only make money by collecting dividends. 

• True
• False

The general public buys new issues of stock on the primary market.

• True
• False

Common stock is more prone to rapid changes; therefore, there is more risk associated.

• True
• False

People who invest in the stock market will automatically make money.

• True
• False

A person who is 25 very likely will have a different risk tolerance when investing than a person who is 55.

• True
• False

Risk is only associated with the purchase of common stocks.

• True
• False

Holders of preferred stock usually do not have voting rights

• True
• False

You can only buy stock in publicly held corporations.

• True
• False

If a company fails, it is possible for stockholders to lose money in addition to the amount they invested.

• True
• False

If a company issues dividends, preferred stock holders are paid the dividends first.

• True
• False