Grade 3 Shares Quiz

Understanding dividends and shareholders: What is a dividend?

• A tax paid by the shareholders

• A payment made by a corporation to its shareholders

• A type of loan given to the corporation

• A discount on future stock purchases

Understanding dividends and shareholders: Who are shareholders?

• Customers of the company

• Employees of the company

• Partial owners of the company

• Government officials

Understanding dividends and shareholders: Why do companies pay dividends?

• To increase the company's expenses

• To reduce the company's profits

• To distribute profits to shareholders and attract investors

• To discourage investors from buying shares

Understanding dividends and shareholders: What happens to the value of shares when a company pays dividends?

• The value of shares fluctuates

• The value of shares decreases

• The value of shares remains the same

• The value of shares increases

Understanding dividends and shareholders: How can someone become a shareholder of a company?

• By being related to someone who works at the company

• By volunteering at the company

• By purchasing shares of the company

• By winning a contest held by the company

Identifying different types of shares: What are common shares?

• Ownership in a company with decision-making rights

• Ownership in a company without voting rights

• Ownership in a company with dividend rights

• Ownership in a company with voting rights

Identifying different types of shares: What are preferred shares?

• A type of stock that is only available to employees of the company.

• A type of stock that gives its holders priority over common shareholders in terms of dividends and assets in the event of liquidation.

• A type of stock that has no voting rights in the company.

• A type of stock that gives its holders priority over preferred shareholders in terms of dividends and assets in the event of liquidation.

Identifying different types of shares: How do common shares differ from preferred shares?

• Common shares give voting rights, while preferred shares give priority in dividends and assets.

• Common shares have no ownership rights, while preferred shares have full ownership rights.

• Common shares have fixed dividends, while preferred shares have fluctuating dividends.

• Common shares give priority in dividends, while preferred shares give voting rights.

Identifying different types of shares: What are voting shares?

• Shares that give the shareholder a discount on company products

• Shares that give the shareholder the right to sell the company

• Shares that give the shareholder a free vacation

• Shares that give the shareholder the right to vote on company decisions

Identifying different types of shares: What are non-voting shares?

• Shares that are only available to employees of the company

• Shares that do not give the shareholder the right to vote on company matters

• Shares that can be exchanged for goods or services

• Shares that give the shareholder the right to vote on company matters