Stock Market Unit Test (Part One)

Before investing in anything you should complete a(n)

• a. application for stock

• b. personal risk assessment

• c. finance course

• d. brokerage application

When choosing the best investment a person should consider which of the following?

• a. Liquidity

• b. Safety

• c. Return

• d. Risk

• e. All of the above

What does a stock represent?

• a. Liability in a specific company

• b. Partial ownership in a specific company

• c. Voting rights in many companies

• d. Ownership of the DJIA

A corporation that is family owned and its stock is not for sale on the open market.

• a. Public

• b. Private

• c. Partnership

• d. Proprietorship

A corporation that decides to sell shares of stock on the open market is called:

• a. Public

• b. Private

• c. Partnership

• d. Proprietorship

A privately owned company lists its shares on a stock exchange, making them available for purchase by the general public.

• a. IPO

• b. PPO

• C. CEO

• d. ROI

What are the two ways people can typically make money while owning stocks?

• Taxes and Dividends

• Growth and Taxes

• Growth and Income

• Income and Dividends

Which of the following has the greatest impact on a company's stock price?

• a. Industry news

• b. Global economy

• c. Corporate earnings

• d. Nation's GDP

A stock that shows a greater than average price appreciation is called a (n):

• a. Income stock

• b. Speculative stock

• c. Growth stock

• d. Tech stock

A stock that pays a greater than average dividend is called a(n):

• a. Income stock

• b. Speculative stock

• c. Growth stock

• d. Tech stock