Quiz on Stocks and Shares (U4,5)

What are stocks and shares?

• Certificates representing ownership of a company

• A form of debt issued by the government

• A type of insurance policy

• A commodity traded on the stock exchange

What is the term for the people who own stocks and shares?

• Stockholders and shareholders

• Bondholders

• Debtholders

• Lenders

What is the process of a company changing from private to public?

• Going public

• Initial Public Offering (IPO)

• Flotation

• All of the above

What is a detailed examination of a company and its financial situation called?

• Prospectus

• Due diligence

• Flotation

• Underwriting

What is a document inviting the public to buy shares?

• Prospectus

• Due diligence

• Flotation

• Underwriting

What is the term for an offer of a company's shares to investors?

• Prospectus

• Due diligence

• Flotation

• Underwriting

What is the role of an investment bank in an IPO?

• To provide financial advice

• To conduct due diligence

• To underwrite the stock issue

• All of the above

What are shares that receive a fixed dividend before ordinary shares?

• Ordinary shares

• Preference shares

• Debt shares

• Equity shares

What is the dividend?

• The price of a share

• The profit of a company

• The amount paid to shareholders

• The cost of buying a share

What happens to preference shareholders if a company goes bankrupt?

• They receive their dividend before ordinary shareholders

• They are repaid before ordinary shareholders but after bondholders

• They lose all their investment

• They become ordinary shareholders