EPF Investing - Day 2

What type of stock has preferential treatment to dividends and in time of bankruptcy?

• Common

• Options

• Preferred

• Short selling

A virtual marketplace where stock traders meet to buy and sell stock is a(n)...

• marketplace

• platform

• board

• exchange

Stock prices fluctuate because of ...

• China

• supply and demand

• inflation

• speed of transactions

When a company first decides to issue stock, this is known as a(n) ...

• stock award

• initial public offering (IPO)

• venture capitalist

• stock option

The volume on a stock quote refers to _______.

• The number of people watching the stock

• The number of shares traded that day

• The trading price range of the stock

• The value of the stock

Why do companies sell stock?

• raise money for the company

• prestige

• to allow the executives to get rich

• to loan it out

In reading a stock market quote, what is the ticker symbol?

• The amount by which the stock is expected to change each day

• Another name for the 52-week high

• The dollar amount of the previous day's closing price

• Shorthand for the company name (e.g. International Business Machines becomes IBM)

What is the market capitalization (market cap) on a stock quote?

• Based on the current share price, this is the total estimate of the value of the company

• The amount of the dividend paid

• The average volume of shares traded over the last 10-days

• The price of the shares divided by the earnings of the company

Why is it important to make sure NOT to just accept an investment analyst position on a stock?

• They are overly optimistic

• Analysts may make money from their recommendation

• Analysts may own shares of the stock recommended

• All of the above

If an analyst has a price target set, what does that mean?

• This is the price that you should buy the stock

• This is the lowest price that the analyst would sell the stock at

• This is the price that they are expected the stock to trade at within the next year

• This is where mutual funds buy the stock