Stocks and the Stock Market

What does owning a stock represent?

• A) A loan to a company

• B) A guarantee of profits

• C) Part ownership of a company

• D) A company’s debt

Which type of stock gives voting rights to shareholders?

• Preferred stock

• Bond stock

• Common stock

• Growth stock

What is a shareholder?

• Someone who owns at least 50% of a company

• Someone who buys and sells real estate

• Someone who owns shares of a company

• Someone who loans money to a company

Where are most stocks bought and sold?

• Local banks

• Stock exchanges

• Private sales

• Government offices

What does NASDAQ stand for?

• National Association of Stock Dealers and Quotas

• National Association of Securities Dealers Automated Quotations

• New American Stock and Dividend Association

• New Asset Sales and Dividend Quote

What do dividends represent?

• A) A company’s promise of future growth

• B) A company’s payment to its shareholders

• C) A fee paid for owning stock

• D) A tax paid on stock gains

How often are dividends typically paid?

• Daily

• Weekly

• Quarterly

• Annually

What does the dividend yield measure?

• The percentage return on a stock based on dividends

• The total revenue of a company

• The number of shares a person owns

• The profit made from selling stocks

What is the main reason companies issue stock?

• To gain publicity

• To raise money for expansion or debt reduction

• To increase competition

• To lower taxes

What determines the price of a stock?

• Government regulations

• The company’s CEO

• Supply and demand

• The Federal Reserve