Stockmarket Make-up Test

The stock market is the safest place to put your money.

• True

• False

How much should you invest into the stock market?

• Only as much as you can afford to lose.

• At least 50% of your savings.

• Not more than 25% of your savings.

• It is a sure bet so as much as you can!

Capital gain is found by....

• purchase price divided by selling price

• selling price divided by purchase price

• selling price minus purchase price

• purchase price minus selling price

Yield of a dividend is found by

• dividend - current price

• dividing dividend by current price

• dividing current price by dividend

• current price - change in price

Volume is

• the total trades in a time period.

• how loud a trade is made in the stock market.

• number of shares x price per share.

A corporation has limited liability

• true, you can lose your stocks but not personal property

• false

A sole proprietorship has limited liability

• true 

• false, you are personally liable and can lose the business and your personal belongings as well.

DIS 3K@24.38Δ1.46

What does this mean?

DIS

• Stock symbol for Disney

• Shares traded

• Price of share when traded

• If price is up or down from yesterday's close

• How much it went up or down from yesterday's close

DIS 3K@24.38Δ1.46

What does this mean?

3K

• Stock Name

• 3000 shares were traded

• Price of share when traded

• If price is up or down from yesterday's close

• How much it went up or down from yesterday's close

DIS 3K@24.38Δ1.46

What does this mean?

@24.38

• Stock Name

• Shares traded

• Each share traded for $24.38

• If price is up or down from yesterday's close

• How much it went up or down from yesterday's close