Stocks and shares quiz

A company whose shares are traded on a stock exchange is called

• a public limited company

• a limited company

• a quoted company

• a listed company

"To take a company public" means

• setting up a company

• to offer its shares on a stock exchange for the first time

• to underwrite a new share issue

• the same as floating the company

Underwriting a share issue means

• guaranteeing that all shares issued will be sold

• buying shares in an Initial Public Offering (IPO)

• applying for shares in an Initial Public Offering (IPO)

• undertaking to buy all shares not bought by others

Preferred shareholders typically have the right to

• vote at the AGM

• get a dividend that depends on the profit made

• get a fixed dividend

• get a higher dividend than ordinary shareholders

Bonus shares

• are issued to the company's employees as a bonus

• are issued to existing shareholders to raise more capital

• are issued to existing shareholders instead of a cash dividend

• are also referred to as a stock dividend

An investor or speculator who is called a "bear" ...

• expects prices to fall

• expects prices to rise

• typically engages in short-selling

• buys shares now to sell them later

Blue-chip shares

• are very risky but promise a high return

• are shares in highly reputable companies

• are seen as a secure investment

• are highly volatile

If an investor has made a capital gain, this means that

• they have received a high dividend or other investment income

• they have sold an asset at a price that exceeds the buying price

• an asset they have bought is currently trading higher than when they bought it

• they have increased their holding in a particular company

The owners of registered shares

• are known to the company

• have special rights and privileges

• have no voting right

• can transfer their shares by mere delivery

The liquidity of an investment refers to

• the cost of acquring the investment

• how easily it can be sold and turned into cash

• the return the holder expects to make on it

• whether it needs to be paid for in cash when buying it