Stocks and Bonds

What is a stock?

• A financial obligation of a company

• A certificate of debt

• A share of ownership in a company

• A type of bond

What is another term for a stockholder?

• Debenture holder

• Creditor

• Shareholder

• Bondholder

What are dividends?

• Penalties paid to stockholders for poor company performance

• Share of the profits paid to stockholders

• Monthly fees that stockholders pay to the company

• Loans taken by the company from stockholders

What type of stock provides voting rights to its owners?

• Preferred Stock

• Common Stock

• Both A and B

• Neither A nor B

Which type of stock typically costs more due to less risk?

• Common Stock

• Preferred Stock

• Both A and B

• Neither A nor B

Does preferred stock guarantee a fixed dividend?

• Yes, it guarantees a fixed dividend

• No, it does not guarantee a dividend

• Yes, but it provides voting rights

• No, it pays variable dividends

What is a Blue Chip stock?

• A stock with high volatility and high risk.

• A stock offered by a new and rapidly growing company.

• A stock offered by a well-established, financially stable company.

• A stock that is not appealing to any investors.

What is a stock symbol also known as?

• A ledger

• A ticker

• A bond

• A certificate

What is a Stock Market Index?

• A list of all stocks available in the market

• A method of measuring the value of a selection of the stock market

• A regulatory body for the stock market

• A database of stockholder information

How many stocks are listed in the Dow Jones Industrial Average (DOW)?

• 30

• 500

• 100

• 50