Stock Market Test Review

“Yld” is an abbreviation for “yield” which refers to

• how often it pays a dividend.

• how often it trades during market hours.

• how much cash returns to stockholders.

P/E on the stock table refers to

• Percent/Equity

• Par/Equity

• Price/Earnings

Investing is considered riskier than saving because

• You will lose what you invested if the company merges with another company

• your investment may not grow.

• you can lose more than what you invested.

A company earns money when..

• it issues shares of stock

• investors buy the stock it’s issued

• their stock is shorted

IPO means

• investor protection option

• income producing opportunity

• initial public offering

You could find a tombstone ad in the

• Classified section of the newspaper listing company’s going out of business

• company’s annual report

• Wall Street Journal

Common stock ownership gives investors

• voting rights in shareholders meetings

• low risk with a high rate of return.

• guaranteed dividends

A bid is

• the highest price an investor is willing to pay for a share of stock

• the stock exchange’s suggested market price for a share of share

• the company’s recommended price for a share of its stock

A ticker symbol is

• a series of alphanumeric characters companies use to identify themselves on social media.

• a series characters stock exchanges use to identify a company

• an abbreviation of a company’s full name as determined by its board of directors

One reason to buy preferred stock instead of common stock is

• it is cheaper than common stock

• its shareholders have more voting rights than common stockholders

• its shareholders get paid first if a dividend is issued