The Stock Market Game: Tracking Your Investments Pre-Test

_____ is good advice for long term stockholders.

• Buy when the market goes up
• Buy and hold
• Sell when the market is down

_____ are determined by the economics of supply and demand.

• Company profit
• Shareholder's dividends
• Stock prices

Dividing a stock's current price per share by issuing company's earnings per share results in:

• the profit margin of the company
• the Beta
• the P/E ratio

Investments that are riskier tend to provide lower returns over time than investments with less risk.

• True
• False

_______ is the total income generated by a company from its goods and services.

• Cash
• Revenue
• Profit

Stocks of companies that tend to mirror the economy, i.e., housing and automobile sectors, are called

• economic stocks

• cyclical stocks

• blue ship stocks

Inflation can affect the economy, but not the earnings of a company.

• True
• False

Stock prices rise because:

• companies are increasing dividends
• there are more buyers than sellers
• the government is raising the interest rate

Lionel is researching the TopHat company and is reviewing the management and finacial data in its annual report. Lionel is using

• technical analysis
• qualitative ananlysis
• fundamental and quantitative analysis

Short selling is a way to make money when

• the market is going down
• you don't have enough money to buy a round lot
• you use the Internet and not a broker