Stock Transactions,/Stock split / dividend income

What is a stock transaction fee?

• A fee paid to a company for holding its stock.

• A fee charged by a broker for buying or selling stocks.

• A fee paid to the government for trading stocks.

• A fee charged by a bank for maintaining a stock account.

Tags

CCSS.7.RP.A.2

CCSS.7.RP.A.3

If a company announces a 2-for-1 stock split, what happens to the number of shares you own?

• The number of shares you own is halved.

• The number of shares you own doubles.

• The number of shares you own remains the same.

• The number of shares you own triples.

Tags

CCSS.6.RP.A.1

CCSS.6.RP.A.3

Which of the following is true about dividend income?

• It is a fixed interest payment from a bond.

• It is a portion of a company's earnings distributed to shareholders.

• It is a fee paid to brokers for managing stocks.

• It is a tax paid on stock transactions.

Ava and Charlotte are discussing how a stock split affects the market capitalization of a company. What is the impact?

• It increases the market capitalization.

• It decreases the market capitalization.

• It does not change the market capitalization.

• It eliminates the market capitalization.

Tags

CCSS.HSA.SSE.A.1

CCSS.HSA.SSE.B.3

Grace receives a dividend of $2 per share and she owns 50 shares. What is her total dividend income?

• $25

• $50

• $100

• $200

Tags

CCSS.3.OA.A.1

CCSS.3.OA.A.3

CCSS.3.OA.C.7

James is considering investing in a company that has announced a stock split. What is the primary purpose of a stock split?

• To increase the stock price.

• To decrease the stock price.

• To make shares more affordable for investors.

• To reduce the number of shares available.

Charlotte is learning about investing and wants to know: Which of the following is a common type of stock transaction fee?

• Dividend fee

• Commission fee

• Interest fee

• Capital gains fee

Samuel is considering investing in a stock that has a dividend yield of 4% and its current price is $50. What is the annual dividend per share?

• $1

• $2

• $4

• $5

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.4

CCSS.HSA.SSE.A.1

Lily is holding shares of a company that announces a 3-for-1 stock split. What happens to the stock price after this split?

• The stock price triples.

• The stock price is divided by three.

• The stock price remains the same.

• The stock price doubles.

Which of the following is NOT a factor that affects dividend income?

• Number of shares owned

• Dividend per share

• Stock transaction fees

• Company earnings