Chapter 12 Finance Quiz 2020

A type of stock that pays a variable dividend and gives the holder voting rights.

• Blue chip stock

• Growth stocks

• Common stock

• Preferred stock

A stockholder’s written authorization to transfer his or her voting rights to someone else, usually a

company manager.

• Par value

• Proxy

• Leverage

• Annuity

The part of the corporation’s profits paid to stockholders.

• Dividends

• Proxy

• Capital gain

• earnings per share

An increase in the number of outstanding shares of a company’s stock.

• Stock split

• Earnings per share

• Par value

• Capital gain

A corporation’s after-tax earnings divided by the number of shares of common stock outstanding.

• Capital gain

• Dividends

• Par value

• Earnings per share

The use of borrowed money to buy securities.

• Short selling

• Market value

• Liquidity

• Leverage

A prolonged period of rising stock prices and a general feeling of investor optimism.

• Bear market

• Bull market

• Capital gain

• Stock market

Stock with a consistent history of paying high dividends.

• Blue chip stocks

• Common stock

• Income stocks

• Preferred stock

Stocks in corporations that reinvest their profits into the business so the company can grow.

• Income stocks

• Common stocks

• Growth stocks

• Blue chip stocks

A type of stock that pays a fixed dividend and carries no voting rights.

• Common stock

• Income stock

• Preferred stock

• Stock split