Stock Market Test Review

Match the following

• The return on an investment

• Stock Exchange

• Marketplace to buy and sell stocks

• Investing

• Putting money into stocks

• Capital gain

• Share of ownership in a company

• Yield

• Profit made selling stock

• Stock

Match the following

• Major advantage of a corporation

• Stock Index

• The Dow Jones Industrial Average

• Limited Liability

• Buying stocks on the Internet

• Unlimited Liability

• Full responsibility for your company's debts

• Day Trading

Match the following

• Business owned by one person

• Partnership

• Business owned by two or more persons who share the risks and responsibilities

• Sole Proprietorship

• Owned by stockholders; decisions made by board of directors elected by stockholders

• Corporation

Allows investors to invest in a variety of stock through a company that manages stocks.

• Preferred Stock

• Blue Chip Stocks

• Mutual Fund

• Common Stock

Who issues stock the FIRST time it is sold?

• New York Stock Exchange

• American Stock Exchange

• Investment Bank

• The Government

The term used when to indicate the money and investment earns or a return on your investment.

• Liquidity

• Yield

• Capital Loss

• Stock

The owner(s) of a company that issues stock.

• Managing Partners

• Board or Directors

• Stock Exchange

• Stockholders

When would buying a growth stock be a good idea?

• You want guaranteed money on your investment.

• You want to invest your money long term for steady growth.

• You are investing for only a short term and want quick profit.

• You only want to invest in a company with a proven track record.

What is NOT a benefit of preferred stock?

• Paid first with remaining assets if a company fails.

• Receive dividends first.

• Have a larger voice in management of company affairs.

The primary form of stock ownership in a corporation is _________ stock.