2025 STOCK MARKET (17)

If the stock price is $20 and the earnings per share are .50/quarter, what is the PE RATIO?

• 0.0025

• 0.10

• 10

• 40

A price reaction in the stock market of 10% or more is called a ______.

• Correction

• Short Sale

• Derivative

• Call Option

Which of the following assets is the most LIQUID?

• Real Estate

• Cash

• Stock Shares

• Mutual Funds

What does it mean to "BUY ON MARGIN"?

• Selling the stock today and buying it back at a future date.

• The option but not the obligation to buy the stock at a future date.

• Buying a stock from a foreign country.

• Paying a small portion for the stock and borrowing the rest.

The net worth of the company divided by the number of shares is called the ______.

• Margin Call

• Book Value

• Call Option

• P/E Ratio

The current price of the stock is called the _____.

• Market Value

• Stock Split

• Commercial Terms

• Dividend

The number of shares in a company that are owned by investors is called ____.

• Market Value

• Dividend

• Preferred Shares

• Outstanding Shares

Which type of stock provides voting rights?

• Corporate Bonds

• Short Selling

• Common Stock Shares

• Preferred Stock Shares

Which of the following is NOT true about Preferred Stock Shares?

• The shares cost more than common stock.

• If the company goes bankrupt, preferred shareholders get paid back first.

• You get one vote in major decisions for every share in the company.

• You have a guaranteed dividend.

What is a DIVIDEND?

• A cash payment

• Dividing up the profits of the company among the shareholders

• A "thank you" from the company for owning their stock

• ALL of the above are correct