The Stock Exchange Review

What are shares?

• Shares indicate a unit of ownership in a particular company.

• Shares indicate wages employees will receive each month.

• Shares are loans given to qualified persons.

The sum of money paid to shareholders as a return on their investment in a company is called

• stocks

• shareholders

• dividends

The name given to persons who own shares in a company.

• bears

• shareholders

• employees

Which is NOT another name for ordinary shares?

• equities

• common shares

• preference shares

Which type of shareholder has voting rights?

• ordinary

• preference

• deferred

Which one of these shareholders would get paid dividends first?

• Ordinary

• Deferred

• Preferred

Which is NOT a type of preference share?

• cumulative

• common

• non-cumulative

• redeemable

What is the yield if par value is $1.00, market value is $2.00 and rate of dividend 8%?

• 3%

• 4%

• 4.5%

What is the yield if par value is $4.00, market value is $9.00 and rate of dividend 5%?

• 2.2%

• 2.3%

• 4.5%

What is the yield if par value is $15.00, market value is $18.00 and rate of dividend 8%?

• 6%

• 6.7%

• 7%